Upon promulgation of the IRA in August, 2022, clients began asking me about whether they can take advantage of incentives now. No, it will take some time for the specific programs to be finalized, approved, and instituted. But on October 6, 2022, a step forward toward this happened. The Treasury Dept and IRS issued 6 public notices requesting feedback on proposed IRS Code sections pertaining to the new Inflation Reduction Act. See the link to the specific request, including background.
Clean Vehicles – Notice 2022-46
Sec. 30D Clean Vehicle Credit
Sec. 25E Previously Owned Clean Vehicle Credit
Advanced Manufacturing – Notice 2022-47
Sec. 45X Advanced Manufacturing Production Credit
Sec. 48C Advanced Energy Project Credit
Home and Business Energy Incentives – Notice 2022-48
Sec. 25C Energy Efficient Home Improvement Credit
Sec. 25D Residential Clean Energy Credit
Sec. 45L New Energy Efficient Home Credit
Sec. 197D Energy Efficient Commercial Buildings Deduction
Energy Generation – Notice 2022-49
Sec. 45 Renewable Electricity Production Credit
Sec. 48 Energy Investment Credit
Sec. 45U Zero-Emission Nuclear Power Production Credit
Sec. 45Y Clean Electricity Production Credit
Sec. 48E Clean Electricity Investment Credit
Credit Payment Structures – Notice 2022-50
Sec. 6417 Direct Payment of Certain Credits
Sec. 6418 Transfer of Certain Credits
Bonus Credit Requirements – Notice 2022-51
Prevailing Wage – (Secs. 30C, 45, 45L, 45Q, 45U, 45V, 45Y, 45Z, 48, 48C, 48E and 179D)
Apprenticeship – (Secs. 30C, 45, 45Q, 45V, 45Y, 45Z, 48, 48C, 48E and 179D)
Domestic Content – (Secs. 45, 45Y, 48 and 48E)
Energy Communities – (Secs. 45, 45Y, 48 and 48E)
Incentives as part of Sec. 45V (Hydrogen Production) and 45Q (Carbon Capture) are not included in this request for public comment and are still being finalized.
Public comments are due on November 4, 2022. It is still a long way until the IRS codes are modified and go into effect. Not going forward with a smart energy upgrade and waiting for a code to be finalized is not a good idea. That means you are continuing with equipment or a system that is less effective and costs you money in the meantime. It is better to go forward with smart upgrades now, even if it is too soon for some of these credits. And, you never know, many may end up with retroactive opportunities for benefits in the provisions.
CCES has the technical experts to help you implement smart energy upgrades to save you significant costs right away, reduce the costs and aggravation of O&M, modernize your operations, and maximize the comfort and effectiveness of your customers and staff. Contact us today at 914-584-6720 or at karell@CCESworld.com.