How to Engage with Treasury on Clean Energy Tax Incentives | Clean Energy

President Biden’s Inflation Reduction Act represents the most aggressive action to confront the climate crisis in our nation’s history. It will make unprecedented investments in America’s clean energy future, strengthen our nation’s energy security, and advance environmental justice. And it will lower energy costs for families who want to install energy efficient appliances, make energy-saving home improvements, and buy new or used electric vehicles.

A significant portion of the Inflation Reduction Act’s clean energy investment is delivered through tax incentives, which will help catalyze historic levels of private investment in clean energy over the next decade while supporting good-paying, union jobs across the country.

Led by the Department of Treasury (Treasury), the Biden-Harris Administration is working expeditiously to provide clarity and certainty to businesses and taxpayers, so the climate and economic benefits of this historic legislation are realized as quickly as possible. Treasury is releasing Notices to collect input from stakeholders, experts, and the public on key climate and energy tax provisions of the law. This input will be essential as Treasury develops guidance and rules to support swift and thoughtful implementation of these transformational incentives for consumers, small businesses, communities, and industries.

On October 5, 2022, Treasury and IRS issued the first series of notices, with stakeholders strongly encouraged to submit written comments within 30 days (by November 4, 2022) on:

On November 3, 2022, the IRS released the second series of notices, with stakeholders strongly encouraged to submit written comments within 30 days (by December 3, 2022) on:

On November 29, 2022, Treasury and IRS, in coordination with the Department of Labor, issued initial guidance on the prevailing wage and apprenticeship requirements of the Credit Enhancements. The issue of guidance on November 29, 2022 starts the 60-day period, meaning the prevailing wage and apprenticeship requirements will be operative after January 30, 2023.

Details on the various tax incentives covered in each Notice are available below. Comments can be submitted electronically or by mail with filing instructions in the notices. Comments submitted after the dates listed may still be considered as practicable while the Biden-Harris Administration works expeditiously to implement the Inflation Reduction Act.

As part of a robust stakeholder engagement strategy, Treasury will continue inviting stakeholders to comment on the implementation of the Inflation Reduction Act’s climate and clean energy tax provisions on a rolling basis as they work to develop and issue guidance for taxpayers. In addition, when Treasury issues proposed regulations on any of the Inflation Reduction Act’s climate and clean energy tax provisions, it will solicit public comments and carefully consider that feedback before finalizing a rule.

Submit comments to Treasury on the Notices for clean energy generation incentives.

Renewable Electricity Production Credit

Tax credit for energy produced by a variety of clean energy technologies

Energy Investment Credit

Tax credit for capital investment to deploy a variety of qualified clean energy technologies

Zero-Emission Nuclear Power Production Credit

Tax credit for energy generation produced by qualified nuclear energy facilities

Clean Electricity Production Credit

A technology neutral tax credit for clean energy generation

Clean Electricity Investment Credit

A technology neutral tax credit for capital investment to deploy clean energy facilities and storage technologies

Submit comments to Treasury on the Notices for consumer vehicle credits.

Clean Vehicle Credit

A credit for consumers purchasing new clean vehicles, with the ability to transfer credit value

Previously Owned Clean Vehicles

A credit for consumers purchasing used clean vehicles, with the ability to transfer credit value

Submit comments to Treasury on the Notices for manufacturing credits.

Advanced Manufacturing Production Credit

A tax credit for the sale and production of clean energy components and critical minerals

Qualifying Advanced Energy Project Credit

A tax credit for capital invested in clean energy manufacturing facilities

Submit comments to Treasury on the Notices for incentives for homes and buildings.

Energy Efficient Home Improvement Credit

A tax credit for the purchase and installation of certain energy efficiency, weatherization, or electrification investments at a taxpayer’s residential property

Residential Clean Energy Credit

A tax credit for expenditures made to improve the energy efficiency and distributed clean energy at a taxpayer’s residential property

New Energy Efficient Home Credit

A credit for the construction of new energy efficient homes

Energy Efficient Commercial Buildings Deduction

A deduction for building energy efficient commercial buildings or to retrofit commercial buildings to become energy efficient

Submit comments to Treasury on the Notices for credit enhancements.

Prevailing Wage Requirement

An enhanced credit amount added to various credits if projects pay a prevailing wage for project execution
This requirement applies to:
- Alternative Fuel Refueling Property Credit (§30C)
- Production Tax Credit (§45, §45Y)
- Credit for Carbon Oxide Sequestration (§45Q)
- Credit for Production of Clean Hydrogen (§45V)
- Clean Fuel Production Credit (§45Z)
- Investment Tax Credit (§48, §48E)
- Advanced Energy Project Credit (§48C)
- Energy Efficient Commercial Buildings Deduction (§179D)
- New Energy Efficient Home Credit (§45L)
- Zero-Emission Nuclear Power Production Credit (§45U)

Apprenticeship Requirements

An enhanced credit amount added to various credits if projects use registered apprenticeship programs in project execution
This requirement applies to:
- Alternative Fuel Refueling Property Credit (§30C)
- Production Tax Credit (§45, §45Y)
- Credit for Carbon Oxide Sequestration (§45Q)
- Credit for Production of Clean Hydrogen (§45V)
- Clean Fuel Production Credit (§45Z)
- Investment Tax Credit (§48, §48E)
- Advanced Energy Project Credit (§48C)
- Energy Efficient Commercial Buildings Deduction (§179D)

Domestic Content Requirement

An enhanced credit amount added to various credits if projects meet certain domestic content requirements for steel, iron, and manufactured products

Energy Community Requirement

An enhanced credit amount added to various credits if projects are located in traditional energy communities

Submit comments to Treasury on the Notices for credit monetization.

Elective Payment of Applicable Credits

Allows certain taxpayers to elect to treat certain credits as a direct payment rather than a credit against their Federal tax liability

Transfer of Certain Credits

Permits certain credits to be transferred from eligible taxpayers to an unrelated taxpayer

Submit comments to Treasury on the Notices for commercial vehicle credits

Qualified Commercial Clean Vehicles Credit

A tax credit for purchasing qualified commercial clean vehicles

Alternative Fuel Vehicle Refueling Property Credit

A tax credit for the cost of placing qualified alternative fuel vehicle refueling property in service

Submit comments to Treasury on the Notices for carbon capture (CCUS).

Carbon Oxide Sequestration Credit

A tax credit for carbon oxide capture and storage, utilization, or injection (referred to as “CCUS”).

Submit comments to Treasury on the Notices for alternative fuels production credits.

Clean Hydrogen Production Credit

A tax credit for producing qualified clean hydrogen

Clean Fuel Production Credit

A technology-neutral tax credit for the production and sale of clean transportation fuel