IRS Transferability Guidance
The tax credit sales market should ramp up quickly. Buyers will have to repay the government if tax credits are recaptured or disallowed on audit.
Tax credit sales
Prices have been mainly in the 90¢ to 93¢ range, but are creeping higher. Buyers can carry back tax credits and recover taxes paid up to three years in the past.
Potential stimulus for carbon capture and clean hydrogen
New EPA rules should create more demand for carbon capture and low-carbon hydrogen at coal- and gas-fired power plants.
Key issues for hydrogen developers
Green hydrogen projects are significantly more complicated than the typical wind or solar project.
Hydrogen pipeline regulation
The US has no clear framework for regulating interstate hydrogen pipelines. There are three possible regimes.
Wage and apprentice negotiations
Developers are having to negotiate more wage and apprentice provisions in construction contracts now that the January 28 deadline to avoid them has passed.
LMI bonus credit guidance
Bonus tax credits of 10% or 20% of project cost can be claimed on some community and rooftop solar projects. The complexity is vastly out of proportion to the small size of the projects.
Comparing carbon offset credits
Demand for voluntary carbon credits is outpacing the supply. The supply is hampered by concerns about quality of the carbon credits.
Split-scope battery purchase contracts
Splitting contracts to buy and then install utility-scale batteries among multiple contractors is a complicated process that can be done, but carries risk.
Sports stadiums and renewable energy
Sports stadiums consume large amounts of electricity during games, making them good candidates for renewable energy.
The US Supreme Court stripped protection under the Clean Water Act for more than 50% of the nation's previously-regulated wetlands.
Purchase Price Allocations
Buyers of projects that qualify for future government payments must allocate part of the purchase price to such payments, the US claims court suggested in mid-June.
Domestic content calculations
Project developers are having a hard time getting the data they need from manufacturers to do the calculations required to claim a domestic content bonus tax credit.
Manufacturer tax credits: Section 48C
Manufacturers who plan to apply for an initial round of $4 billion in tax credits for building production lines to make products for the green economy have until noon eastern time on July 31 to submit.
Contract manufacturing is becoming more important as some manufacturers angling for section 45X credits for making components for wind, solar and storage projects farm out the physical work to other companies.
PTC inflation adjustment
Production tax credits for producing renewable electricity will be higher this year than in 2022, but the amount varies depending on when the project went into service.