President Biden’s Inflation Reduction Act represents the most aggressive action to confront the climate crisis in our nation’s history. It will make unprecedented investments in America’s clean energy future, strengthen our nation’s energy security, and advance environmental justice. And it will lower energy costs for families who want to install energy efficient appliances, make energy-saving home improvements, and buy new or used electric vehicles.
A significant portion of the Inflation Reduction Act’s clean energy investment is delivered through tax incentives, which will help catalyze historic levels of private investment in clean energy over the next decade while supporting good-paying, union jobs across the country.
Led by the Department of Treasury (Treasury), the Biden-Harris Administration is working expeditiously to provide clarity and certainty to businesses and taxpayers, so the climate and economic benefits of this historic legislation are realized as quickly as possible. Treasury is releasing Notices to collect input from stakeholders, experts, and the public on key climate and energy tax provisions of the law. This input will be essential as Treasury develops guidance and rules to support swift and thoughtful implementation of these transformational incentives for consumers, small businesses, communities, and industries.
On October 5, 2022, Treasury and IRS issued the first series of notices, with stakeholders strongly encouraged to submit written comments within 30 days (by November 4, 2022) on:
On November 3, 2022, the IRS released the second series of notices, with stakeholders strongly encouraged to submit written comments within 30 days (by December 3, 2022) on:
On November 29, 2022, Treasury and IRS, in coordination with the Department of Labor, issued initial guidance on the prevailing wage and apprenticeship requirements of the Credit Enhancements. The issue of guidance on November 29, 2022 starts the 60-day period, meaning the prevailing wage and apprenticeship requirements will be operative after January 30, 2023.
Details on the various tax incentives covered in each Notice are available below. Comments can be submitted electronically or by mail with filing instructions in the notices. Comments submitted after the dates listed may still be considered as practicable while the Biden-Harris Administration works expeditiously to implement the Inflation Reduction Act.
As part of a robust stakeholder engagement strategy, Treasury will continue inviting stakeholders to comment on the implementation of the Inflation Reduction Act’s climate and clean energy tax provisions on a rolling basis as they work to develop and issue guidance for taxpayers. In addition, when Treasury issues proposed regulations on any of the Inflation Reduction Act’s climate and clean energy tax provisions, it will solicit public comments and carefully consider that feedback before finalizing a rule.