Treasury and IRS Proposed Regulations for Clean Energy Owners
The Department of the Treasury and the Internal Revenue Service have issued proposed regulations under the Inflation Reduction Act for owners of qualified clean electricity facilities and energy storage technology seeking relevant tax credits. The Act, established in 2022, includes the clean electricity production credit and the clean electricity investment credit, offering taxpayers the opportunity to claim credits for electricity production or investments in clean energy facilities and storage technology. The proposed regulations, applicable to facilities placed in service after 2024, are open for public comments and cover various topics, including:
- Calculation of credit amounts
- Definition of qualified facilities and energy storage technology
- Definition of metering devices
- Definition of related and unrelated persons
- Rules related to facility expansion
- Rules on recapture
- Definition of greenhouse gas emissions and emission rates, including carbon capture effects
- List of qualified facilities with qualifying emissions rates and the process for obtaining a provisional rate
The proposed regulations also outline how the public can submit comments to the IRS and details on the public hearing. For more information on energy guidance under the Inflation Reduction Act, visit IRS.gov.
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