The U.S. Department of the Treasury and Internal Revenue Service are seeking public feedback on proposed income tax regulation amendments regarding the implementation of section 45X of the Internal Revenue Code.
Established by the Inflation Reduction Act (IRA), section 45X governs the Advanced Manufacturing Production Credit, which has facilitated increased investment in U.S. manufacturing and clean energy, the Treasury Department said in a notice issued Thursday.
The notice of proposed rulemaking, or NPRM, offers definitions of key terms that would help incentivize production in the U.S. and define situations in which the Advanced Manufacturing Production Credit can be claimed. The NPRM also includes measures that would protect against fraud, waste or abuse.
National Economic Adviser Lael Brainard said the document issued by the Treasury Department “creates the framework for investing in a clean energy future here in America in ways that create good jobs for American workers.”
John Podesta, senior advisor to the president for clean energy innovation and implementation, noted that the IRA “has already fueled a clean energy manufacturing boom in America.”
The new guidance, he said, “gives the clean energy industry even more clarity and confidence to continue their momentum.”
Secretary of Energy Jennifer Granholm praised the Biden administration’s efforts to spur U.S. economic activity.
“The Advanced Manufacturing Production Credit will supercharge a new era of American manufacturing and bring good paying clean energy jobs back to American communities,” she added.
The public has 60 days to comment on the proposed section 45X rules.