IRS Energy Tax Credit Eligibility Rules (1)

The Treasury Department and the IRS have proposed new rules for technology-neutral green energy tax credits, which are expected to go into effect in 2025 and be billed as the next generation of renewable energy credits.

The technology neutral reliefs – sections 45Y and 48E – are part of a larger package of tax reliefs established under the Tax and Climate Act 2022, known as the Mitigating Inflation Act. They will offer incentives for eligible facilities with net zero or lower emissions, regardless of technology, unlike many current energy credits tied to specific technologies, such as hydrogen or nuclear.

“This technology-driven approach is now outdated” – John Podesta,…