US Treasury Department Issues Guidelines to Promote Clean Energy Manufacturing
The US Department of the Treasury and Internal Revenue Service (IRS) have released guidance on the domestic content bonus under the Inflation Reduction Act for clean energy projects and facilities that meet American manufacturing and sourcing requirements. The bonus will boost American manufacturing, including in iron and steel, and provide tax credits to drive investment and ensure all Americans share in the growth of the clean energy economy. The guidance includes key clarifications around the treatment of labor costs and a safe harbor for certain types of clean energy projects. The Treasury Department will continue issuing guidance on the Inflation Reduction Act’s clean energy provisions on a rolling basis in the coming months.