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Energy Tax Credits: Recent IRS Guidance, Energy Communities, Low-Income Communities, Domestic Content, and Section 48C

Qualified Wind and Solar Projects, Placed-in-Service Considerations, , Applied-For Credits, Monetization Structures

Note: CPE credit is not offered on this program

Recording of a 90-minute premium CLE video webinar with Q&A

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Conducted on Thursday, April 25, 2024

Recorded event now available

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This CLE webinar will provide attorneys instruction on the essential components of the myriad proposed and final Treasury Regulations and other key IRS guidance published over the past year to implement the energy tax credit changes made by the Inflation Reduction Act of 2022 (IRA), including regarding the domestic content and energy community adders, long-awaited clarifications and definitions of what qualifies as "energy property" under Section 48, procedures for selling credits and claiming direct payments, and special rules for partnerships. The panel will discuss which projects are potentially eligible for the Section 48C credit and Section 48(e) adder for qualified solar and wind facilities that serve low-income communities and explain the application process for allocations of both credits. Our faculty will also describe common transaction structures, and other key items regarding energy tax credits.


The IRA created many new tax incentives to enhance the development of clean energy projects. Noteworthy changes include bonus tax credits for projects built with U.S. domestic content, located in energy communities or low-income communities, tax credit monetization opportunities using "direct" pay and transferability, and a significant refresh and expansion of Section 48C advanced energy project tax credit allocations.

The Treasury and the IRS issued Notice 2023-29, modified and clarified by Notice 2024-30, providing guidance on the up to 10 percent additional investment tax credit (ITC) or production tax credit (PTC) for a qualifying facility, project, or storage technology located in an energy community (the Energy Community Bonus Credit). It is crucial to understand what constitutes an energy community under each of the three possible categories: (1) the brownfield site category; (2) the statistical area category; or (3) the coal mine or coal-generating unit closure category. The panel will also explain the complicated process set forth in Notice 2023-38, published May 12, 2023, for establishing satisfaction of the domestic content requirements for a 10 percent additional ITC or PTC's, and supplemental guidance in Notice 2024-9 for applicable entities making a direct payment election under Section 6417.

Another development is the publication of final Treasury Regulations related to the significant low-income community bonus credits of a 10 or 20 percent additional Section 48 ITC for qualified solar and wind facilities located within specified low-income communities or on Indian land, that are part of affordable residential housing program, or directly benefit specified low-income areas (the Low-Income Bonus Credit). In October 2023, Treasury and the IRS released the details of the process and related rules for this applied-for credit under the 2023 Program in Revenue Procedure 2023-27, and recently issued Revenue Procedure 2024-17 with updates and clarifications for the 2024 Program, including some changes to how the 1.8 GW capacity limitation is allotted amount four categories of projects, as well as final Treasury Regulations. The allocation process requires attestation of compliance with certain geographic, ownership, and user details to receive priority consideration for capacity allocations for an increased ITC, which will be important for 2024 applications given that there were over 46,000 applicants during the first 30-days of the 2023 application cycle. Our panel will describe the guidance and requirements under Section 48(e) to assist with navigating the complex process to obtain the Low-Income Bonus Credit. The IRA revived and expanded the applied-for 30 percent tax credit for investments in a "qualified advanced energy project" under Section 48C. The panel will discuss which projects are potentially eligible for the Section 48C tax credit, guidance under Notices 2023-18 and 2023-44, the first round of allocations, applying for an allocation of the Section 48C tax credit in the second round set to open in 2024, and other key items.

Listen as our panel discusses the plethora of new proposed and temporary Treasury Regulations, Notices and Revenue Procedures published since the enactment of the IRA to explain eligibility requirements such prevailing wage and apprenticeship, which projects are eligible under Section 48C and how to qualify for the energy tax credit adders, and the procedures to follow for electing direct pay or selling regarding energy tax credits.



  1. Overview of energy tax credits and the IRA
  2. Monetizing Tax Credits
    1. Direct payments under Section 6417
    2. Transferability under Section 6418
    3. Traditional tax equity financing
  3. Tax Credit Adders
    1. 10 percent adder for being located in an energy communy
    2. 10 percent adder for projects produced solely with domestic steel, iron and manufactured products
    3. Meeting prevailing wage and apprenticeship requirements for maximum tax credits.
  4. Applied-for Energy Credits
    1. Section 48(e) Low-Income Qualified Projects
      1. What type of projects may qualify?
      2. Definition of "low-income community"
      3. Applications and allocation of the annual 1.8 GW capacity limitation
    2. Section 48C Advanced Energy Project Credits tax credits
      1. History and Revisions to the program
      2. Types of qualifying projects
    3. Application and allocations of the fixed $10B credit pool


The panel will discuss these and other key issues:

  • Overview of energy tax credits under current tax law
  • What constitutes an energy community and what nuances apply with respect to determining if your facility is considered located within one?
  • What supporting documents does the taxpayer need to establish a project is comprised of domestic steel, iron and manufactured products to be eligible for the 10 percent adder?
  • What are the placed in service requirements under the DOE Program for allocating the 1.8 GW capacity limitation under Section 48(e)
  • Timing and application considerations for projects seeking the applied-for Section 48C credit and allocations of capacity to claim the Low-Income Bonus Credit under Section 48(e)


Guthrie, Sam
Sam B. Guthrie

Akin Gump Strauss Hauer & Feld

Mr. Guthrie advises clients on U.S. federal income tax matters, with a particular emphasis on the tax equity financing...  |  Read More

Nickel, Marc
Marc D. Nickel

Senior Vice President

Mr. Nickel advises business on a broad range of energy issues related to U.S. federal, state, and local taxes. He has...  |  Read More

Levin-Nussbaum, Anne
Anne S. Levin-Nussbaum


Ms. Levin-Nussbaum's practice encompasses a broad spectrum of US federal income tax matters, with a particular...  |  Read More

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