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Renewable Energy Tax Credits News Briefs - April 2024

The Internal Revenue Service (IRS) published in the March 11 Federal Register elective pay final regulations for the renewable energy investment tax credit. The decision adopts and codifies temporary regulations issued in June 2023 with slight modifications after two rounds of public comments, including a comment letter and testimony from the Renewable Energy Working Group, hosted by Novogradac. The final regulations modify the limitations for elective pay, modify the denial of the double benefit rule and provide an interim rule for determining a partner’s distributive share of the tax-exempt income. The regulations take effect May 10.

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The IRS published in the March 11 Federal Register final regulations for the elective payment of the advanced manufacturing tax credit under Section 38. The regulations govern the tax credit for the manufacturing of semiconductors and equipment used to manufacture them. The announcement includes special rules for partnerships and S corporations, as well as maintains the mandatory prefiling registration from previously issued temporary regulations. The tax credit was established as part of the Creating Helpful Incentives to Produce Semiconductors and Science Act of 2022, which was signed concurrently with the Inflation Reduction Act of 2022. The regulations take effect May 10.

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Calendar year 2023 delivered more clean power capacity than any previous year, according to a report the American Clean Power Association issued March 7. Nearly 34 gigawatts (GW) of utility scale clean energy endeavors came online, besting the previous high-water mark set in 2021. Solar, wind and storage were the leading sectors, combining for 77% of the new capacity added. Texas, which added 5.9 GW of capacity in 2023, led all states and territories.

Journal Category:

Renewable Energy Tax Credits

Authors:

Novogradac

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