On February 13th, the US Department of Treasury issued guidance* on the IRA’s Advanced Energy Project Credit. Further guidance is necessary and will be forthcoming by May 31, 2023, but the following was offered:
- Concept papers are required and must be submitted to the DOE by July 31, 2023.
- Only projects with a “reasonable expectation of commercial viability” will be considered, and upon consideration will be ranked and recommended.
- For wind, solar and geothermal, equipment that qualifies includes solar panels / support structures, wind turbines / towers / related equipment, and geothermal turbines and heat pumps.
- Ineligible property includes “equipment for applications other than the conversion of energy from renewable resources for delivering electricity, building heat, or industrial process heat, such as a gas turbine generator set which burns natural gas or a building that houses a boiler to heat water with fossil fuel.”
- Once a project is certified for credits, the project must be placed into service within two years.
For more details visit: Notice for Qualifying Advanced Energy Project Credit.
*The notices issued in the guidance included the Advanced Energy Project Credit and the Low-Income Communities Bonus Credit Program.