There were 239 press releases posted in the last 24 hours and 390,646 in the last 365 days.

IRS provides guidance for the Domestic Content Bonus Credit

IR-2024-140, May 16, 2024

WASHINGTON — The Department of Treasury and the Internal Revenue Service today released Notice 2024-41PDF to modify an existing safe harbor and to provide a new elective safe harbor for determining the Domestic Content Bonus Credit amounts.

The Department of Treasury and the IRS released Notice 2023-38 on May 12, 2023, which provides rules that taxpayers may rely on to qualify for the Domestic Content Bonus Credit amounts and related record-keeping and certification requirements.

Today’s notice modifies the existing safe harbor provided in “Table 2--Categorization of Applicable Project Components” in Notice 2023-38 to include hydropower and pumped hydropower storage facilities, redesignates the “Utility scale photovoltaic system” Applicable Project as the “Ground-mount and rooftop photovoltaic system,” and includes certain manufactured product components for previously listed applicable projects.

Notice 2024-41 also provides a new safe harbor that allows taxpayers to elect to use the classifications of components and cost percentages (in lieu of direct costs of the manufacturer as provided in Notice 2023-38) to determine if the adjusted percentage rule is satisfied.

Notice 2024-41 also requests comments regarding the new elective safe harbor to inform any future updates.

More information may be found on the Inflation Reduction Act of 2022 page on IRS.gov.