Dec 27 -- The Internal Revenue Service (IRS) invites comments to OMB by January 26, 2024 regarding the information collected for the Qualifying Advanced Energy Project Credit under § 48C(e)(1) of the Internal Revenue Code.
IRS Notice 2023-18 establishes the program under § 48C(e)(1) of the Internal Revenue Code to allocate $10 billions of credits ($4 billion of which may only be allocated to projects located in certain energy communities) for qualified investments in eligible qualifying advanced energy projects (§ 48C(e) program). A qualifying advanced energy project (1) re-equips, expands or establishes an industrial or manufacturing facility for the production or recycling of certain clean energy technologies specified in Notice 2023-18; (2) re-equips any industrial or manufacturing facility with equipment designed to reduce greenhouse gas emissions by at least 20% through the installation of certain technologies specified in Notice 2023-18; or (3) re-equips, expands, or establishes an industrial facility for the processing, refining, or recycling of critical materials (as defined in section 7002(a) of the Energy Act of 2020 (30 U.S.C. 1606(a)).
A taxpayer must submit, for each qualifying advanced energy project: (1) a concept paper for Department of Energy (DOE) consideration and (2) a § 48C(e) application (consisting of (i) an application for DOE recommendation and (ii) an application for § 48C(e) certification). To be eligible to claim any § 48C credits allocated to a project under the § 48C(e) program, a taxpayer must also provide to DOE (1) evidence establishing that a project satisfies the certification requirements specified in Notice 2023–18 and (2) a notification that the project has been placed in service.
The information will be used by (1) the DOE to provide a recommendation to the IRS regarding the acceptance or rejection of each § 48C(e) application and a ranking of the applications, and (2) the IRS to determine which projects should be allocated § 48C credits under the § 48C(e) program and whether a taxpayer can claim the § 48C credits allocated to a project. Concept papers and § 48C(e) applications are submitted according to the requirements prescribed in Notice 2023-18.
The Department of Treasury and the IRS consulted with the DOE on the qualifying advanced energy project definitions provided in Notice 2023-18 and the procedures applicable to submitting concept papers and applications for DOE recommendation.
Generally, tax returns and tax return information are confidential as required by 26 USC 6103. Section 48C(e)(7) requires the Secretary to publicly disclose the identity of the applicant and the amount of the credit to the applicant.
It is estimated that there will be approximately 2,500 applicants for this program.
IRS Notice 2023-18
https://www.irs.gov/newsroom/irs-and-treasury-provide-guidance-on-the-qualifying-advanced-energy-project-credit
IRS submission to OMB:
https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=202311-1545-012 Click IC List for information collection instrument, View Supporting Statement for technical documentation. Submit comments through this webpage.
FRN:
https://www.federalregister.gov/d/2023-28538 (#13)
For AEA members wishing to submit comments, "A Primer on How to Respond to Calls for Comment on Federal Data Collections" is available at
https://www.aeaweb.org/content/file?id=5806