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December 14, 2023

IRS issues proposed regulations for IRC Section 45X advanced manufacturing credit

The IRS and Treasury Department released proposed regulations (REG-107423-23) for implementing the advanced manufacturing production credit (IRC Section 45X) created by the Inflation Reduction Act. The credit is intended to incentivize the domestic production of solar and wind components, inverters, battery components and certain critical minerals. The proposed regulations outline what activities would qualify as producing eligible components as well as providing rules for calculating the credit and recordkeeping and reporting requirements. The proposed regulations would also clarify the rules on sales between related parties and procedures to elect to treated related-party sales the same as those to an unrelated party.

A Tax Alert is forthcoming.

Published by NTD’s Tax Technical Knowledge Services group; Chris DeZinno, legal editor