On Apr. 29, US IRS issued notice on energy project credit program.
US IRS provided guidance for 2024 allocation advanced energy project credit program.
US Treasury released press release on overview and benefits of the program.
Notice relates to project credit programs under sec. 48 of IRS Code (26 USC 48).
Background
On Feb. 13, 2023, US IRS issued Notice 2023-18 to establish program and announce initial allocation round of credits, see #163158, further guidance in Notice 2023-44.
Approximately $4 billion in credits were allocated by US IRS in first allocation round.
Today’s notice announces second round to allocate the remaining $6 billion credits. T
The investments will improve the nation’s energy security and create good-paying jobs in vital fields such as clean-energy manufacturing and critical materials processing.
Also allow for existing energy infrastructure to be retooled for clean energy economy.
Of the remaining $6 billion, about $2.5 billion in Section 48C credits is expected to be allocated to projects located in Section 48C(e) Energy Communities Census Tracts.
If all of the remaining credits are allocated, round will be the last round of the program
Will evaluate if credits are unallocated at close, determine if other allocation is needed.
Application
The application portal for the second round of applications for Section 48C Qualifying Advanced Energy Project Credit Program will open no later than May 28, 2024.
US IRS will make all Round 2 allocation decisions no later than Jan. 15, 2025.
Regulators
US IRS; US Treasury
Entity Types
Corp
Reference
US Treasury: PR, 4/29/2024; US IRS: PR, Nt 2024-36, 4/29/2024; ESG; Citation: 26 USC 48;
