IRS Provides Additional Guidance for Advanced Energy Projects Under Section 48C of the Code
On May 31, 2023, the IRS released Notice 2023-44, which provides additional guidance for applicants seeking allocations of the Qualifying Advanced Energy Project Credit under Section 48C of the Internal Revenue Code (a “Section 48C credit”). The Section 48C credit program governs the allocation of $10 billion in U.S. federal income tax credits available to eligible projects. Of the $10 billion allocation, $4 billion must be allocated to projects located in an “energy community” (as defined in Section 45(B)(11)(b) of the Code).
Previously, the IRS issued Notice 2023-18 (summarized in our GT Alert) establishing the Section 48C credit program. Notice 2023-44 clarifies the process for applicants to submit concept papers to the Department of Energy and explains the criteria considered during the evaluation process for applicants seeking a recommendation from the Department of Energy for allocations of the Section 48C credit. Additionally, Notice 2023-44 provides updated appendices, previously published in Notice 2023-18, for defining qualifying advanced energy projects, the Department of Energy application process, and the Section 48C(e) energy community census tracts.