IRS Proposes Clean Energy Tax Credit Requirements

The IRS and Department of the Treasury proposed new regulations for taxpayers who own clean electricity facilities and energy storage technologies who may want to claim relevant tax credits. 

The Inflation Reduction Act of 2022 established a clean electricity production credit and a clean electricity investment credit. 

The credits will be available for projects placed in service after Dec. 31, 2024 and whose clean energy facility achieves net-zero greenhouse gas emissions. 

Qualified facilities include new units or any additions.

Specifically, the proposed guidance outlines technologies that meet the environmental standards under the Inflation Reduction Act, which includes wind, solar, hydropower, marine and hydrokinetic, nuclear fission and fusion, geothermal, and certain types of waste energy recovery property. 

The guidance goes on to describe how energy storage technologies could qualify for the investment, defines metering devices, and explains the general rules related to its application. 

Business leaders can submit comments to the IRS until August 2. 

A public hearing is set for August 12 and August 13.