On November 3, 2022, the U.S. Department of the Treasury (Treasury) and Internal Revenue Service (IRS) released three Notices requesting public comments by December 3, 2022, on certain additional aspects of the clean energy tax incentives included in the Inflation Reduction Act of 2022 (IRA). Treasury and the IRS previously released six Notices, on October 5, 2022, requesting public comments by November 4 on certain other aspects of the energy tax incentives, which are described in our alert. The Treasury and the IRS will consider written comments submitted after December 3 if such consideration will not delay the issuance of guidance.
The new Notices seek public comments about the following clean energy tax credits added or expanded by the IRA.
- Notice 2022-56 requests comments on the new tax credit for qualified clean commercial vehicles under Code Section 45W1 and the reinstated and expanded tax credit for alternative fuel vehicle refueling property under Code Section 30C.
- Notice 2022-57 requests comments on the IRA’s changes to the tax credit for carbon capture and sequestration under Code Section 45Q credit, including comments on defining the direct air capture technology that qualifies for a significantly higher credit.
- Notice 2022-58 requests comments on the new tax credit for clean hydrogen production under Code Section 45V (including with respect to guidance to clarify the definition of “qualified clean hydrogen”) and the tax credit for clean fuel production under Code Section 45Z (including the establishment of emission rates for qualifying fuel).
Treasury and the IRS seek comments on the specific questions identified in the Notices and any matters not specifically identified. The specific questions in the Notices highlight the areas where the Treasury and the IRS intend to issue Treasury Regulations or other guidance and identify where they anticipate potential confusion or ambiguity. Input from industry stakeholders is important to help inform the development of guidance implementing the new and expanded clean energy tax incentives added by the IRA.
We will continue to provide updates concerning the implementation of the new tax incentives included in the IRA. For further information or assistance with respect to providing public comments or how to take advantage of the new tax incentives for clean energy, please contact the authors or your Mintz relationship attorney.
1 References to Code Sections are to the applicable section of the Internal Revenue Code of 1986, as amended (the “Code”).