IR-2023-220, Nov. 17, 2023
WASHINGTON — The Division of the Treasury and the Inner Income Service right now issued proposed regulations updating guidelines for the funding tax credit score underneath part 48 (ITC) which were unchanged since 1987. The proposed guidelines replace the varieties of power properties eligible for the part 48 ITC, reflecting modifications within the power trade, technological advances, and updates from the Inflation Discount Act of 2022 (IRA).
Power trade members will recognize that the proposed rules present definitions of power properties for which the ITC was out there earlier than the IRA. These embrace, however will not be restricted to, photo voltaic course of warmth, fiber-optic photo voltaic property, mixed warmth and energy system property, certified gasoline cell property, and certified microturbine property.
These proposed rules additionally deal with applied sciences that have been added to the ITC as power property by the IRA, together with electrochromic glass, power storage expertise, microgrid controllers, and biogas property. Importantly, the IRA added new provisions to the ITC to permit smaller initiatives to incorporate the price of sure varieties of interconnection property of their credit score quantity.
Moreover, the proposed rules present normal guidelines for the ITC together with the applying of the “80/20” Rule to retrofitted power property, twin use property, and points associated to a number of homeowners of an power property.
Further details about steering issued underneath the IRA is on the market at Inflation Reduction Act of 2022.