Earlier today, Nov. 3, the IRS issued three new public notices concerning upcoming energy guidance on five of the tax incentives included in the recently passed Inflation Reduction Act (IRA). Each notice includes a brief description of the provision as drafted in the legislation, providing some preliminary insights on how these credits may be interpreted.
These three notices follow six initial public notices released last month that focused on the electricity and advance manufacturing credits, as well as new concepts like the prevailing-wage and apprenticeship requirements that affect many of the credits included in the IRA. Public comments on the previous notices must be submitted by Nov. 4.
More information on these credits will be provided as part of a White House briefing on the afternoon of Nov. 4 concerning myriad climate and environmental justice programs. Attendees can register for the webinar here.
In the final section of each new notice, several questions are posed related to the implementation of each credit. Many of these questions concern the ongoing development of definitions and parameters for new, previously undefined terms. The IRS requests responses to this latest round of questions by Saturday, Dec. 3.
These notices include questions on the expanded Sec. 45Q Carbon Oxide Sequestration Credit and novel Sec. 45V Clean Hydrogen Production Credit. The Treasury Department hopes that these credits will help spur the creation of new domestic energy industries in conjunction with funding for hydrogen hubs provided by the Infrastructure Investment and Jobs Act,which was enacted in November 2021.
The three notices are soliciting public feedback on the following Internal Revenue Code sections:
Commercial Vehicles and Refueling Property — Notice 2022-56
Sec. 45W, Qualified Commercial Clean Vehicles Credit
Sec. 30C, Alternative Fuel Vehicle Refueling Property Credit
Carbon Capture — Notice 2022-57
Sec. 45Q, Carbon Oxide Sequestration Credit
Hydrogen and Fuel Production Credits – Notice 2022-58
Sec. 45V, Credit for Production of Clean Hydrogen
Sec. 45Z, Clean Fuel Production Credit
If you are interested in providing feedback to IRS and Treasury, please contact Russ Sullivan of the Brownstein Tax Policy Group.
THIS DOCUMENT IS INTENDED TO PROVIDE YOU WITH GENERAL INFORMATION REGARDING THE IRS'S REQUEST FOR COMMENT ON IRA TAX PROVISIONS. THE CONTENTS OF THIS DOCUMENT ARE NOT INTENDED TO PROVIDE SPECIFIC LEGAL ADVICE. IF YOU HAVE ANY QUESTIONS ABOUT THE CONTENTS OF THIS DOCUMENT OR IF YOU NEED LEGAL ADVICE AS TO AN ISSUE, PLEASE CONTACT THE ATTORNEYS LISTED OR YOUR REGULAR BROWNSTEIN HYATT FARBER SCHRECK, LLP ATTORNEY. THIS COMMUNICATION MAY BE CONSIDERED ADVERTISING IN SOME JURISDICTIONS.