Treasury guidance eases path to US manufacturing tax bonus

By Jason Plautz | 05/16/2024 06:28 AM EDT

Revised wording could help clean energy developers find cost information more easily.

Wind turbines in Warsaw, New York, are shown on Nov. 25, 2019.

Wind turbines are seen in Warsaw, New York. Julie Jacobson/AP

The Biden administration released additional guidance Thursday that it says will make it easier for renewable energy manufacturers and developers to take advantage of tax credits tied to materials made in the U.S.

The credits, which were included in the 2022 Inflation Reduction Act, add as much as 10 percent to the existing production tax credit for wind energy and investment tax credit for solar energy and energy storage.

The updated guidance released Thursday gives an elective safe harbor designation so clean energy developers can rely on default cost percentages for manufactured products and components rather than getting direct cost information from suppliers.


“The Inflation Reduction Act’s domestic content bonus is a crucial tool for investing in American workers and American businesses,” John Podesta, senior adviser to President Joe Biden for international climate policy, said in a statement. “Today’s new safe harbor approach will make it simpler for more companies to take advantage of this powerful incentive and support good-paying American jobs.”