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May 29, 2024

IRS releases proposed IRC Section 45Y and 48E clean electricity credit rules

The IRS and Treasury Department today released proposed regulations (REG-119283-23) related to the IRC Section 45Y clean electricity production credit and IRC Section 48E clean electricity investment credit established by the Inflation Reduction Act. The proposed regulations would provide rules for determining greenhouse gas emission rates, petitioning for provisional emissions rates and determining eligibility for the credits for facilities placed in service after 2024. Among other things, the proposed regulations identify specific qualifying zero greenhouse gas emissions technologies and would require that technologies relying on combustion or gasification to produce electricity undergo a lifecycle greenhouse gas emissions analysis to demonstrate net-zero emissions. A Tax Alert is forthcoming.

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