Treasury issues guidance on IRA advanced solar manufacturing credit

Before the end of December 14th, 2023. The Treasury Department and IRS presented regulations on December 14th to provide guidance regarding the advanced production of manufacturing credit created by the IRA. A meeting open to the public regarding the suggested rule will take place on Tuesday, February 22, 2024 at 10 o’clock in the morning. The regulations concerning Section 45X give a credit for the manufacturing and sale of components in the United States including solar and wind energy parts, inverters, applicable battery components, and pertinent critical minerals. The complete lawful document can be accessed here. The tax credit rates for components qualifying for Section 45X of the regulations are unaltered compared to last year’s instructions. The Treasury has outlined which components are applicable for this section in its regulations. An inverter is an item that can be used to turn direct current (DC) electricity produced from one or more solar modules or certified distributed wind energy systems into alternating current (AC) electricity. Components for harnessing solar power: Solar module, photovoltaic cell, photovoltaic wafer, solar grade polysilicon, torque tube, structural fastener, and polymeric backsheet. The materials used to construct the electrodes, the individual cells of the battery, and the modules that hold the cells together all need to meet certain qualifications before the battery can be used.