{"id":108061,"date":"2024-12-05T07:43:10","date_gmt":"2024-12-05T12:43:10","guid":{"rendered":"https:\/\/\/?p=108061"},"modified":"2024-12-05T07:44:23","modified_gmt":"2024-12-05T12:44:23","slug":"treasury-releases-final-rules-on-sunsetting-sec-48-itc","status":"publish","type":"post","link":"https:\/\/\/2024\/12\/treasury-releases-final-rules-on-sunsetting-sec-48-itc\/","title":{"rendered":"Treasury releases final rules on Sec. 48 ITC"},"content":{"rendered":"

The Dept. of the Treasury and the IRS have released the\u00a0final rules<\/a> for the Sec. 48 Energy Credit \u2013 also known as the federal investment tax credit (ITC). For decades, the ITC has fueled U.S. clean energy development by providing a tax credit for investments in qualifying clean energy property \u2013 generally 30% of the cost of the project, although the level of the credit has varied over time and by technology.<\/p>\n

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Credit: Primoris Renewable Energy<\/p><\/div>\n

While the ITC has advanced clean energy projects, its effectiveness was limited by the need for recurring short-term and retroactive legislative extensions, creating uncertainty and making it harder for clean energy developers to make investments and secure financing for projects.<\/p>\n

The Inflation Reduction Act extended the ITC \u2013 as well as the closely related production tax credit (PTC) \u2013 until 2025, at which point the ITC and PTC will switch to a tech-neutral approach with credits that will be available in full for projects beginning construction at least through 2033.<\/p>\n

\u201cBy ending short-term legislative extensions for the ITC, the Inflation Reduction Act has given clean energy project developers clarity and certainty to undertake major investments and produce new clean power to meet growing electricity demand,\u201d said\u00a0U.S. Deputy Secretary of the Treasury Wally Adeyemo. \u201cToday\u2019s announcement will help lower consumers\u2019 utility bills, strengthen U.S. energy security, and create good-paying jobs.\u201d<\/p>\n

Although the final rules retain the core framework of the proposed rules and guidance Treasury and the IRS issued in November 2023,<\/a> the final rules clarify general rules for the ITC and its definitions of property eligible for the credit, informed by 350 written comments<\/a> from stakeholders. Specific issues raised by commenters that the final rules address include:<\/p>\n