Table of Contents
The Department of Treasury and the Internal Revenue Service have announced the release of Notice 2024-41PDF, which includes modifications to an existing safe harbor and the introduction of a new elective safe harbor for determining the Domestic Content Bonus Credit amounts. This notice comes as a follow-up to Notice 2023-38, which outlined the rules for taxpayers to qualify for the Domestic Content Bonus Credit amounts and related record-keeping and certification requirements. The modifications in Notice 2024-41 include the inclusion of hydropower and pumped hydropower storage facilities in the existing safe harbor, as well as the redesignation of the "Utility scale photovoltaic system" Applicable Project as the "Ground-mount and rooftop photovoltaic system." Additionally, certain manufactured product components for previously listed applicable projects have been included. The notice also introduces a new safe harbor that allows taxpayers to elect to use the classifications of components and cost percentages to determine if the adjusted percentage rule is satisfied. The Department of Treasury and the IRS are also seeking comments regarding the new elective safe harbor to inform any future updates. For more information, visit the Inflation Reduction Act of 2022 page on IRS.gov.
