The Department of the Treasury worked with the Internal Revenue Service and other agencies to create guidelines on the domestic content bonus, an incentive for clean energy projects and facilities that are built using iron, steel and other products manufactured in the United States.
The guidance is expected to advance the Biden administration’s Investing in America agenda and is in compliance with the Inflation Reduction Act, the Treasury Department announced Friday.
Developed with the Departments of Transportation and Energy, the guidance sets a required amount of domestically manufactured products, especially steel and iron, used to construct clean energy projects and sites in order for them to qualify for the bonus. It also specifies the minimum percentage of cost that should have been spent on mining, processing and manufacturing the products and their components in the U.S.
“The domestic content bonus under the Inflation Reduction Act will boost American manufacturing, including in iron and steel, so America’s workers and companies continue to benefit from President Biden’s Investing in America agenda,” Secretary of the Treasury Janet Yellen commented. “These tax credits are key to driving investment and ensuring all Americans share in the growth of the clean energy economy.”