Long awaited details!
This is an insightful assessment by Utility Dive's Emma Penrod covering last Friday's (May 12) issuance of a 'notice of intent' by the U.S. Department of the Treasury and the Internal Revenue Service (IRS) on how renewable energy projects will qualify for the additional 10% domestic content tax credit rider created by the Inflation Reduction Act (IRA). Solar power projects that use domestic content are eligible for the full 30% investment tax credit (ITC), and they can increase their tax credit by an additional 10%, to 40% in total by purchasing domestically produced hardware – albeit 100% of steel and iron must be manufactured in the United States. For manufactured goods – like solar panels, inverters, and electrical gear – the hardware must initially be 40% US manufactured.