New IRS Guidance for Domestic Content 10% Bonus Tax Credit for Renewable Energy Projects
Notice 2023-38 and Requirements for Bonus Production Tax Credits or Investment Tax Credits Under IRC Sections 45, 45Y, 48, or 48E
Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
Intermediate
- work Practice Area
Energy
- event Date
Wednesday, August 2, 2023
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
90 minutes
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This 90-minute webinar is eligible in most states for 1.5 CLE credits.
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BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.
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BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).
This CLE/CPE webinar will discuss key items under recently issued Notice 2023-38, applicable projects and the domestic content bonus opportunity, a description of domestic content items, certification and recordkeeping requirements, and next steps for renewable energy developers.
Mr. Nickel advises business on a broad range of energy issues related to U.S. federal, state, and local taxes. He has provided counsel on the qualification of transactions for renewable energy tax credits, application of existing tax laws to new technologies, multi-state product launch transactions, and resolution of tax controversies at the federal and state level.
Mr. Haun is a partner in the Tax practice of Paul Hastings and is based in the firm’s Los Angeles office. He provides tax and business advice to a broad range of domestic and international clients in a wide variety of partnership and limited liability company transactions; acquisitions, mergers and dispositions involving corporations, including cross-border transactions; restructuring matters; tax issues involving credit agents; real estate investments; initial coin offerings; cryptocurrencies and virtual currency matters. He also specializes in tax-subsidized transactions and represents developers, syndicators, investors and lenders with respect to investments that involve low-income housing tax credits; renewable energy tax credits; historic tax credits; and new markets tax credits.
Ms. Levin-Nussbaum's practice encompasses a broad spectrum of US federal income tax matters, with a particular emphasis on renewable energy transactions and financing.
The Inflation Reduction Act created a 10 percent tax credit adder to encourage the use of "domestic content" in renewable projects that qualify for the production tax credit and investment tax credit. The domestic content bonus credit is available to projects that qualify for the ITC or PTC under current Sections 48 or 45 or, beginning in 2025, Sections 48E or 45Y beginning in 2025 if all of the steel and iron and the required percentage of manufactured products included in the completed project are produced in the United States. Attorneys assisting renewable energy developers, manufacturers and investors must understand these domestic content requirements and the potential challenges involved in satisfying them.
On May 12, 2023, the IRS published Notice 2023-38, providing the rules for establishing satisfaction of the requirements to qualify for the bonus credit and a safe harbor regarding the classification of certain components. Qualifying renewable energy and storage projects built with 100 percent domestically produced steel and iron and the required percentage of manufactured products (currently 40 percent) can receive an additional 10 percent ITC or increase their PTCs by 10 percent. However, qualification for this bonus tax credit involves a thorough analysis of complex rules, providing evidence that may be difficult to obtain and consideration of available planning strategies to address related matters concerning expected tax credits, financing and the overall success of a renewable project.
Listen as our panel discusses key items under recently issued Notice 2023-38, applicable projects and the domestic content bonus opportunity, and next steps for renewable energy developers.
- Inflation Reduction Act of 2022: new 10 percent domestic content bonus credit on renewables
- Impact of new 10 percent bonus credit for renewables
- Notice 2023-38: key provisions and challenges
- Certification and recordkeeping
- Key issues and pitfalls to avoid for renewable projects
The panel will discuss these and other key issues:
- Inflation Reduction Act of 2022 and new 10 percent domestic content bonus credit on renewables
- Key items and challenges stemming from IRS Notice 2023-38
- Requirements and processes involved to qualify for the domestic content bonus credit
- Determining classification of the components of the completed project under the rules
- Safe harbor requirements and pitfalls to avoid
- Navigating the certification and recordkeeping requirements
Learning Objectives
After completing this course, you will be able to:
- Understand the application of new 10 percent domestic content bonus tax credit under the Inflation Reduction Act
- Identify key items and challenges stemming from IRS Notice 2023-38
- Ascertain the requirements and processes involved to acquire the domestic content bonus tax credit
- Recognize which products are considered "domestic content" items for purposes of the bonus tax credit
- Understand the interplay of new 10 percent domestic content bonus and other energy tax credits
- Ascertain the certification and recordkeeping requirements for the bonus tax credit for renewable energy projects
Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.
Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).
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