new IRS Regulations Detail Clean Electricity Tax Credits
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Published: January 26, 2025 | Author: priyashah, World-Today-News.com
Clean Electricity Credits Available to Taxpayers
Taxpayers involved in the production or investment in clean electricity may now be eligible for critically important tax credits.Specifically,the Clean Electricity Production Credit (section 45Y) and the Clean Electricity Investment credit (Section 48E) are available for facilities or energy storage technologies placed in service after 2024.
These new credits are slated to replace the existing Production Tax Credit (Section 45) and Investment Tax Credit (Section 48) beginning in 2025, marking a significant shift in incentives for clean energy progress.
Technology-Neutral Approach Based on Emissions
A key feature of the new credits under Sections 45Y and 48E is their technology-neutral design. Qualification for these credits is resolute by greenhouse gas (GHG) emissions rates, rather than specific technologies.
IRS Final Regulations – TD 10024
The Internal Revenue Service (IRS) has released final regulations, detailed in Treasury Decision 10024 (TD 10024), outlining the rules for determining GHG emissions rates associated wiht electricity production.
These regulations also cover procedures for petitioning for provisional emissions rates and establishing eligibility for the credits. The IRS states that these final regulations impact all taxpayers claiming either the Clean Electricity Production Credit or the Clean Electricity Investment Credit.
Further Resources
For a more in-depth analysis, a whitepaper is available for download: Clean Electricity Production and Investment Credits.
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