The photo voltaic business is seeking to the Biden administration for clearer steerage on key renewable power tax credit score provisions within the Inflation Discount Act as an business official stated he believes the Feb. 13 The deadline for the Treasury Division to launch extra particulars is not going to be enforced.
Ben Norris, senior director of regulatory affairs on the Photo voltaic Vitality Industries Affiliation, stated in a webinar on Wednesday that he believes the administration is “on observe for at the least preliminary steerage to be issued on or round” the statutory deadline of February 13, however he doesn’t see that deadline as enforceable.
“There are lots of deadlines, however deadlines, to be efficient, have to be enforced,” he stated. “And sadly, this isn’t a deadline that we imagine will likely be carried out. Nonetheless, we all know that this is a matter that’s prioritized throughout the administration, and policymakers have many conversations with the business.
Norris stated SEIA has been speaking to the Biden administration “actually every single day” concerning the business’s want for well timed and clear steerage.
The IRA stated the Treasury secretary should situation particular steerage on clear power tax credit no later than 180 days after the regulation went into impact on August 16, making the deadline February 13.
Norris stated the deadline applies to “key” tax credit score provisions together with an adder for industrial photo voltaic installations in low-income communities and an growth of a tax credit score that gives incentive for clear power producers to buy and fee property to construct a producing facility.
SEIA initiatives that within the second quarter of 2023, the federal authorities will situation steerage on the availability of IRAs for non-taxable entities to obtain direct funds for renewable power initiatives as an alternative of tax credit, and a bonus adder for initiatives that use a specific amount of in-house.
Along with engaged on the steerage, the administration is an announcement of proposed rulemaking that might broaden Part 48 of the tax code, which offers with the funding tax credit score, or ITC, Norris stated. However in response to the joint administration agenda, to this point this growth solely addresses some contexts the place the IRA has expanded the ITC, resembling power financial savings and interconnection prices.
Though SEIA expects the Biden administration to supply some preliminary steerage close to the deadline, Norris stated they anticipate the preliminary steerage to deal with high-level questions and the extra detailed steerage and rulemaking. will comply with later.
“We will anticipate this to be a typical, not only for low-income communities, however for any of the steerage paperwork that we’re focusing on right here,” he stated. “These are complicated topics and the IRA is a protracted and in depth piece of laws. The administration is making an attempt to strike a steadiness between timeliness and completeness, and sadly, that is a course of that may take about month or 12 months.