Elawan bags Google PPA for 37-MW solar project in Texas
Sep 19, 2024 13:49 CESTThe US Department of the Treasury and Internal Revenue Service (IRS) on Thursday released their proposed rules on how to implement the Advanced Manufacturing Production Credit under the Inflation Reduction Act (IRA), aiming to supercharge the local production of components and raw materials for the clean energy industry.
“Today’s guidance from Treasury on the Advanced Manufacturing Production Credit gives the clean energy industry even more clarity and confidence to continue their momentum,” said John Podesta, Senior Advisor to the President for Clean Energy Innovation and Implementation.
The document includes the proposed regulations under which the production of eligible components will be incentivised. This concerns some solar and wind energy components, inverters, qualifying battery components, and applicable critical minerals. The guidance also clarifies the circumstances under which taxpayers can claim the credit.
The Solar Energy Industries Association (SEIA) welcomed the announcement and urged the US Treasury “to swiftly finalise” the rules. According to Abigail Ross Hopper, president and CEO of SEIA, with the release of the proposed rules, the industry has secured several wins.
“Companies that use contracted manufacturing facilities now have the flexibility to quality for the 45X production tax credit. The guidance also includes incentives for production of optimised inverter systems, a critical component for the growing residential solar sector,” she stated.
Jose Zayas, Executive Vice President of Policy and Programs for the American Council on Renewable Energy (ACORE), also applauded the news, saying the following: “The inclusion of key components, including emerging battery technologies and offshore wind vessels, in addition to prior guidance unlocking the direct pay option for the 45X credit, provides needed clarity for our sector [...]”
In turn, the National Mining Association (NMA) criticised the proposed guidance, with president and CEO Rich Nolan saying that it “fails to uphold Congress’s intent to incentivise the secure and reliable mineral supply chains we need.”
He continued: “These tax incentives were created by Congress to address an extraordinary vulnerability and create American jobs while supporting the adoption of clean energy technologies. By restricting the benefits available to the front end of the supply chain – the mines and minerals that drive the clean energy economy – the incentives offer a pittance of what Congress intended to bolster domestic raw material supply and take on China.”
The US Treasury’s Notice of Proposed Rulemaking (NPRM) for the section 45X tax credit will be open for public comment for 60 days. The final rules will be issued once it has carefully considered all public comments.
Elawan bags Google PPA for 37-MW solar project in Texas
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