Tax Credits and Incentives

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Tax season
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On Oct. 19, 2023, the Internal Revenue Service (IRS) announced a special withdrawal process for employers that submitted claims for Employee Retention Credit (ERC) and are concerned their claims may be inaccurate.

Under the program, employers who submitted ERC claims but have not yet received a refund may withdraw their claims and avoid future repayment obligations, interest, and penalties.

The IRS created the withdrawal program to help businesses that were pressured by aggressive marketing tactics into submitting ERC claims that…

Continue Reading IRS Announces Special Program to Withdraw Employee Retention Tax Credit Claims

On June 14, 2023, the IRS released proposed regulations within Section 6418 Transfer of Certain Credits concerning the election under the Inflation Reduction Act of 2022 (IRA) to transfer certain energy tax credits. The industry has eagerly awaited these proposed regulations as the original statute left a number of critical unanswered questions that made the much-hyped “marketplace” for tax credits difficult to implement. Some of these questions have now been answered. Below are some observations as to what the future…
Continue Reading Energy Tax Credits: Predicting the Tax Credit Marketplace of 2024 and Beyond

Interested and eligible manufacturers, developers, and sponsors looking to pursue new advanced energy project tax credits under Internal Revenue Code Sections 48C and 45X have been faced with an important question: Should you apply for the Advanced Energy Project Tax Credit under Section 48C or claim the Advanced Manufacturing Production Credit under Section 45X?

These options should be analyzed carefully because your selection could have significant financial consequences.

Section 48C refers to the Qualifying Advanced Energy Project Credit, which offers…
Continue Reading Tax Credits for Green Manufacturing: 48C v. 45X

The month of May was a busy one for the IRS, as the agency has been hard at work releasing new guidance and rules regarding energy tax credits. In Notice 2023-38, the IRS provides detail on how the “domestic content” tax credit rate adder can be satisfied. Notice 2023-44 offers guidance on the application process for the advanced energy project tax credit outlined in Section 48C. These notices are both intended to provide interim guidance until the IRS can publish…
Continue Reading Energy Tax Credits – Recent Developments Bring New Guidance and Questions