Overview
The Treasury Department (Treasury) and the Internal Revenue Service (IRS) released the next round of notices requesting public comments as they continue the work to implement the Inflation Reduction Act's (IRA) energy tax incentives. Comments on these three new notices, released on November 3, 2022, are due to Treasury and the IRS on December 3, 2022.
The three notices focus on (1) the section 45W qualified commercial clean vehicles credit and the section 30C alternative fuel vehicle refueling property credit; (2) the section 45Q carbon sequestration credit; and (3) the section 45V clean hydrogen production credit and section 45Z clean fuel production credit.
Last month, Treasury and IRS released the first six notices requesting public comments on the IRA's energy tax provisions. Comments for the first round of notices were due on November 4, 2022, but we understand this is a "soft" deadline. See our prior summary here.
Similar to the first round of notices, these three new notices all request comments on defining the terms, qualifying technologies, application, and recordkeeping requirements for the new provisions.
- Notice 2022-56 requests comments on the new section 45W qualified commercial clean vehicles credit and the section 30C alternative fuel vehicle refueling property credit, including comments relating to the new requirement under section 30C for qualifying equipment to be installed in an "eligible census tract."
- Notice 2022-57 requests comments on the IRA's expansion of the section 45Q credit, including comments on defining the direct air capture technology that now qualifies for an enhanced credit.
- Notice 2022-58 requests comments on the new section 45V clean hydrogen production credit, including the definition of "qualified clean hydrogen," the allocation of "lifecycle greenhouse gas emissions," alignment with the Department of Energy's draft guidance on the Clean Hydrogen Production Standard issued under the Infrastructure Investment and Jobs Act, and coordination with section 45Q. The notice further requests comments on establishing emissions rates for qualifying fuel under section 45Z, including for sustainable aviation fuel.
According to Treasury officials, guidance implementing the new energy tax provisions in the IRA is a top agency priority to allow projects to get started as soon as possible.
