IRS Updates Safe Harbor Guidance for Bonus Energy Tax Credit

Jan. 16, 2025, 2:03 PM UTC

The IRS Thursday released an updated safe harbor for the domestic content bonus credit.

Notice 2025-08 updates the May 2024 elective safe harbor for the credit. The safe harbor allows developers to use a default cost percentage 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.

The notice includes an expanded table for solar photovoltaic table, modifies the land-based wind table, updates cost percentages for components of battery electric storage systems, along with a few other changes.

  • The domestic content bonus credit increases the ...

Learn more about Bloomberg Tax or Log In to keep reading:

See Breaking News in Context

From research to software to news, find what you need to stay ahead.

Already a subscriber?

Log in to keep reading or access research tools and resources.