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IRS Notice Expands Safe Harbors for Domestic Content Bonus

Thursday, May 16, 2024 - 1:49PM

The Internal Revenue Service (IRS) issued today a notice that expanded the safe harbor for two types of renewable energy facilities for the domestic content bonus for renewable energy tax credits (RETCs) along with a new safe harbor for classifying and calculating amounts of the domestic content bonus. Notice 2024-41 extended the safe harbor provided in Table 2 of last year’s Notice 2023-38 to include hydropower and pumped hydropower storage facilities with regard to whether components were steel and iron or manufactured products. The notice clarified that "utility-scale solar" applies to rooftop and ground-mount systems. It also provided a new safe harbor to use for components for manufactured products in lieu of getting direct cost information from suppliers. Written comments on the notice to the IRS must be submitted by July 15.

Learn more about hot topics in renewable energy by watching the Novogradac Tax Credit Tuesday podcast’s YouTube playlist for the Renewable Energy Tax Credit Finance Series.

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