After the Inflation Reduction Act was passed, the Department of the Treasury and the Internal Revenue Service today issued instructions on how to set up a programme to distribute credits for qualified investments in qualified advanced energy projects.
The section 48C(e) programme is established by PDF to provide $10 billion in credits, of which $4 billion may only be distributed to projects situated in certain energy communities census tracts. Also, the notification offers basic programme instructions.
In the first allocation phase, the Treasury Department and the IRS plan to distribute $4 billion in section 48C credits, with around $1.6 billion of those credits going to projects in specific energy communities. The remaining credits will be distributed in subsequent allocation rounds by the Treasury Department and the IRS. Also, this notice includes definitions of qualified advanced energy projects, basic guidelines for calculating the section 48C credit, and instructions for assigning credits.
By May 31, 2023, the Treasury Department and the IRS will provide supplementary advice to offer greater information on the data applicants will need to submit to obtain a credit allocation.
(Source Credit: This article was originally published by irs.gov : news on February 13th, 2023.)