On January 16, 2025, Treasury issued updated guidance on the section 45, 48, 45Y, and 48E Renewable Energy & Clean Electricity Production and Investment Tax Credits. Specifically, Treasury updated the elective safe harbor for the domestic content bonus credits applying to solar energy, land-based wind energy, and battery electric storage systems. The updated guidance seeks to “appropriately recognize cost differentials for manufacturers who use cells made with domestic wafers.” The domestic content bonus is intended to encourage domestically-produced materials and strengthen American manufacturing.
The sections 45, 48, 45Y, and 48E Renewable Energy and Clean Electricity Production and Investment tax credits are funded by IRA sections 13101, 13102, 13701 and 13702.