Treasury Department, IRS Release Sections 45Y, 48E Tech-Neutral PTC and ITC Final Regulations

The U.S. Department of the Treasury and IRS on Jan. 7, 2025, released final regulations regarding the clean electricity production tax credit (PTC) determined under Section 45Y, as well as the clean electricity investment tax credit (ITC) determined under Section 48E of the Internal Revenue Code. Enacted by the Inflation Reduction Act, Section 45Y and Section 48E replace the traditional Section 45 PTC and Section 48 ITC and apply to projects placed in service after Dec. 31, 2024. The credits are in effect until at least 2032, when they become subject to a three-year phaseout.

The Holland & Knight Energy Tax Team is reviewing the final regulations and will provide additional analysis. To receive this forthcoming analysis, please subscribe to our alerts and access the Holland & Knight Inflation Reduction Act Tax Resource Library.

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