On December 14, 2023, the U.S. Department of the Treasury (Treasury) and Internal Revenue Service (IRS) released proposed guidance on the section 45X Advanced Manufacturing Production Credit. This credit was established by the Inflation Reduction Act (IRA).
Treasury’s Press Release states in part:
Treasury’s Notice of Proposed Rulemaking (NPRM) for the section 45X Advanced Manufacturing Production Credit proposes clarifying definitions and confirms credit amounts for eligible components, including solar energy components, wind energy components, inverters, qualifying battery components, and applicable critical minerals. It also proposes definitions for key terms to incentivize production in the United States and to clarify the circumstances under which taxpayers can claim the credit.
The NPRM includes important safeguards to prevent potential fraud, waste, or abuse, including safeguards against duplicative crediting of the same component, crediting of activities that are not value-added, or extraordinary circumstances in which components are produced but not put to productive use.
The NPRM will be open for public comment for 60 days and Treasury will carefully consider public comments before issuing final rules.
See Treasury Press Release here: https://home.treasury.gov/news/press-releases/jy1989
See Proposed Guidance here: https://public-inspection.federalregister.gov/2023-27498.pdf