Treasury Finalizes Clean Energy Investment Tax Credit Rules (1)

The Treasury Department and IRS on Wednesday finalized the investment tax credit rules for energy projects, weeks before the credit expires.

The final rules (TD 10015, RIN 1545-BO40) provide guidance on the types of energy properties that can receive the Section 48 investment tax credit, which was expanded in the Democrats’ 2022 tax-and-climate law known as the Inflation Reduction Act. The investment tax credit generally provides a break for about 30% of the cost of a project. Lawmakers have extended the credit for decades.

The November 2023 proposed rules received 350 comments. The final rules clarify ownership ...