ACORE Statement on the Treasury Department’s Section 48 ITC Guidance

The U.S. Treasury Department has released preliminary guidance on the Section 48 Investment Tax Credit, which was expanded under the Inflation Reduction Act (IRA) to include new credits for fast-growing technologies such as offshore wind, battery storage, and microgrid controllers. Following is a statement from Gregory Wetstone, President and CEO of the American Council on Renewable Energy (ACORE), on the notice of proposed rulemaking released this morning:

“Thanks to the IRA, clean energy businesses now have access to a stable tax platform like the one enjoyed by the fossil fuel sector for more than a century, but to fully take advantage of these benefits, they need to understand how the provisions work. The tax guidance released provides important clarity to developers and investors looking to further America’s energy transition. We remain impressed by the Administration’s commitment to fully maximizing the economic and environmental benefits of this transformative legislation, and plan to continue working closely with Treasury in support of fair, timely, and practicable final rules across all facets of the clean energy tax package.”

ACORE submitted both individual and joint comments to the U.S. Treasury Department seeking clear IRA guidance. ACORE staff has also participated in stakeholder roundtables with the Biden administration on the implementation of the IRA.