Boosting Clean Energy: US Treasury Rules Proposal
- The US Treasury and IRS propose rules for new Advanced Manufacturing Production Credit under IRA, incentivising clean energy components like solar & wind energy, batteries, and critical minerals. SEIA & ACORE praised the Credit, however NMA criticise it for not providing enough incentive. Public comment open for 60 days.
The US Department of the Treasury and the Internal Revenue Service (IRS) have proposed rules for implementing the Advanced Manufacturing Production Credit under the Inflation Reduction Act (IRA). This Credit aims to incentivise the local production of components and raw materials for the clean energy industry, with eligible components including solar and wind energy components, inverters, qualifying battery components, and applicable critical minerals. Solar Energy Industries Association (SEIA) and American Council on Renewable Energy (ACORE) welcomed the news, however the National Mining Association (NMA) expressed criticism, stating that the credit does not provide enough incentive to bolster domestic raw material supply. Public comment on the proposed rules will be open for 60 days, after which the Treasury will issue the final rules.
What Are the Proposed Rules of IRA's Advanced Manufacturing Production Credit?
The Proposed Rules of IRA's Advanced Manufacturing Production Credit are as follows:
- The Advanced Manufacturing Production Credit will incentivize the local production of components and raw materials for the clean energy industry.
- Eligible components for the Credit include solar and wind energy components, inverters, qualifying battery components, and applicable critical minerals.
- The Credit will be open to businesses that manufacture such components within the United States.
- The Treasury will accept public comments on the proposed rules for 60 days.
- The Treasury will issue the final rules after the 60-day public comment period is over.
