IRS Gives New Option for Bonus Energy Credit Cost Calculations

The Treasury Department and IRS on Thursday issued guidance aimed at providing certainty for green energy developers seeking domestic content bonus credits for certain renewable energy projects, removing one of the biggest challenges facing taxpayers seeking the add-ons.

The guidance establishes a safe harbor allowing developers to use a default cost percentages calculation determined by the Department of Energy instead of getting that information from suppliers who are reluctant to share that sensitive business information with customers.

“This new safe harbor approach will make it simpler for more companies to take advantage of this powerful incentive and support good-paying American ...