The US Internal Revenue Service (IRS) and the Department of Treasury announced proposed regulations (REG-119283-23), on Wednesday, 29 May, 2024, concerning the clean electricity production credit under section 45Y and the clean electricity investment credit under section 48E.
These credits were established by H.R. 5376, also known as the “Inflation Reduction Act of 2022” (IRA).
The proposed regulations provide rules for:
- Determining greenhouse gas emissions rates resulting from the production of electricity.
- Petitioning for provisional emissions rates.
- Determining eligibility for these credits in various circumstances.
The proposed regulations will affect all taxpayers who produce clean electricity and claim the clean electricity production credit with respect to a facility or the clean electricity investment credit with respect to a facility or energy storage technology that is placed in service after 2024.
The proposed regulations will apply to qualified facilities that come into service after 31 December, 2024, and during tax years ending on or after the final regulations are published in the Federal Register.
