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Proposed guidance for clean electricity production and investment tax credits just released.

Published by Baker Tilly

The article discusses new guidance on clean electricity production and investment tax credits under sections 45Y and 48E, as introduced by the Inflation Reduction Act (IRA). The proposed regulations, applicable from December 31, 2024, provide detailed instructions on calculating greenhouse gas emissions, metering devices, and qualifying facilities. They also address Combined Heat and Power (CHP) properties, provisional emission rates, and the 80/20 rule for retrofits. The guidance aims to enhance investor and developer certainty, facilitating clean electricity project growth. It includes increased credit amounts for facilities meeting labor standards and outlines rules for recapture provisions, transferability, and coordination with other credits.

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