The Department of the Treasury and the Internal Revenue Service issued Notice 2024-9 that provides procedures for applicable entities to claim the statutory exception to the application of the phaseouts for elective payment projects that begin construction during calendar year 2024 that fail to satisfy the domestic content requirement. Domestic content is generally defined as steel, iron or manufactured products that are manufactured or produced in the United States. The phaseouts for elective payment and the statutory exception apply to the following credits:

  • Renewable Electricity Production Credit (IRC § 45)
  • Clean Electricity Production Credit (IRC § 45Y)
  • Energy Credit (IRC § 48)
  • Clean Electricity Investment Credit (IRC § 48E)

Applicable entities are generally tax-exempt organizations, state and local governments, Indian tribal governments, Alaska Native Corporations, the Tennessee Valley Authority or rural electric cooperatives. The notice also requests comments which will help develop future proposed regulations. You may submit comments electronically via the Federal eRulemaking Portal or by mail to Internal Revenue Service (CC:PA:LPD:PR – Notice 2024-09, Room 5203, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044).