The Treasury Department and the Internal Revenue Service (IRS) on May 12 issued Notice 2023-38 that provides guidance regarding the bonus tax credit available for domestic content (i.e., steel, iron or manufactured products that are manufactured or produced in the United States) under certain energy credits enacted as part of the Inflation Reduction Act (IRA).
Under the IRA, additional tax credits are provided to taxpayers who meet domestic-content requirements under the Section 48 Investment Tax Credit generally available through 2024 and the Clean Energy Production Credit and Clean Electricity Investment Credit that both take effect in 2025. Additional information on these tax credits is available here: https://www.nmhc.org/news/nmhc-news/2022/everything-you-need-to-know-multifamily-opportunities-included-in-the-infrastructure-investment-and-job-act-inflation-reduction-act/
The Notice also provides that Treasury and the IRS intend the rules to be consistent with proposed regulations expected to be issued later this year and applicable to taxable years ending after May 12, 2023. Additionally, the Notice provides that taxpayers may rely on guidance in the Notice for projects that commence construction before 90 days after the proposed regulations are published in the Federal Register. Access the full details of the Notice here.