Agency: Department of the Treasury
Description:
Tax credit for solar, geothermal, fuel cell, microturbine, combined heat and power, wind, and waste energy recovery property; plus new provisions for energy storage technology, biogas, and microgrid controllers.
Bill Section:
13102
US Code:
26 USC 48
New or Existing:
Existing
Potential Cost:
$14,000,000,000
Timeline:
Beginning construction before Jan. 1, 2025
Implementation Status/Rulemaking:
On October 5, 2022, the Internal Revenue Service issued Notice 2022-49 to requested comments on a number of energy generation incentives. Comments were due November 4, 2022: Source
On April 4, 2023, the Internal Revenue Service issued Notice 2023-29 which requested comments on what constitutes an energy community under sections 45, 45Y, 48, and 48E. Comments were due May 4, 2023: Source
On May 12, 2023, the Internal Revenue Service issued Notice 2023-38 which provides initial guidance on the domestic content bonus credit under sections 45, 45Y, 48, and 48E: Source
The Internal Revenue Service issued Notice 2023-45 and Notice 2023-47 to provide further guidance on what constitutes an energy community: Source
TCS Notes:
No GHG emission reduction requirements. $5.4 billion of estimated cost is in FY26 alone.
Elective Payment and Transferability allowed in certain cases.