Treasury officials indicated at a recent conference that the second round of allocations for the advanced energy property credit program under Section 48C would be launched in 2024.
The 30% credit is available for a broad range of activities that might not fit under the specific definitions for other energy credits, but taxpayers must apply for a limited $10 billion allocation. The IRS will begin accepting concept papers for the first round of funding on May 31, 2023, with a deadline of July 31, 2023. The IRS has offered guidance on how the application process will work (see our previous story), but additional guidance is expected before the process opens.
Taxpayers with potentially qualifying projects may want to consider applying in the first round, as the IRS is offering to debrief taxpayers who are rejected to understand the strength and weaknesses of their application. This could provide an opportunity for taxpayers to improve their chances at funding when round two opens in 2024.
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