The US Treasury Department and the IRS published the final rules for the advanced manufacturing production tax credit under Internal Revenue Code (IRC) section 45X in the federal register on 28 October 2024.
The final regulations ([TD 10010] RIN 1545-BQ85) were issued on 24 October 2024 and will go into effect on 27 December 2024.
The final regulations are concerned with the advanced manufacturing production credit established by the Inflation Reduction Act of 2022 to incentivise the production of eligible components within the United States. Eligible components include specific solar energy components, wind energy components, inverters, qualifying battery components, and applicable critical minerals.
These final regulations also address specific recordkeeping and reporting requirements. These final regulations affect eligible taxpayers who produce and sell eligible components and intend to claim the benefit of an advanced manufacturing production credit, including by making elective payment or credit transfer elections.
Earlier, the US Department of the Treasury and the Internal Revenue Service (IRS) announced the final regulations on 22 October 2024. The rules guide the implementation of the Advanced Manufacturing Investment Credit from the CHIPS Act of 2022.
