How Proposed Rules Would Implement Sec. 45X Clean Energy Credit

Four recently issued regulations from the IRS would expand definitions and impose safeguards against fraud for the Advanced Manufacturing Production Credit under Internal Revenue Code §45X.

The notice of proposed rulemaking, REG-107423-23 (Dec. 15, 2023), including the four regulations discussed below, comes 16 months after enactment of the historic Inflation Reduction Act of 2022, which created a slate of related tax credit and incentive provisions, among them §45X, to promote domestic clean and renewable energy production.

The Advanced Manufacturing Production Credit supports the domestic production of equipment and components (solar, wind, batteries, and inverters) and critical minerals. The ...