IRS Publishes First Annual Table for Clean Electricity Credits

In Brief  

  • Revenue Procedure 2025-14 introduces the first Annual Table for sections 45Y and 48E, listing non-combustion and gasification facilities. 
  • IRS Annual Table includes technologies eligible for tech-neutral energy credits, such as wind, solar, and nuclear fission. 
  • Effective Dates: Revenue Procedure 2025-14 is effective from January 15, 2025, and will be published in IRB: 2025-7 on February 10, 2025. 

IRS Releases First Annual Table for Tech-Neutral Energy Credits 

The IRS has issued Revenue Procedure 2025-14, which provides the first Annual Table for sections 45Y and 48E. This table lists the types and categories of facilities that qualify for the Clean Electricity Production Credit and the Clean Electricity Investment Credit. These facilities are described as non-combustion and gasification facilities in Treasury Decision 10024. 

The Annual Table, effective from January 15, 2025, includes the following technologies eligible for tech-neutral energy credits: Wind (including small wind properties) 

  • Wind (including small wind properties) 
  • Hydropower
  • Marine and hydrokinetic 
  • Solar (including photovoltaic and concentrated solar power)
  • Geothermal (including flash and binary plants)
  • Nuclear fission
  • Fusion energy
  • Waste energy recovery property that derives energy from a source listed in the table 

The list aligns with the final rules released by the IRS earlier this month. The revenue procedure will be published in the Internal Revenue Bulletin (IRB) 2025-7, dated February 10, 2025. 

The Treasury Department emphasizes that these tech-neutral credits are crucial for reducing energy costs for American families and businesses. According to projections from the Department of Energy, these credits, along with other provisions from the Inflation Reduction Act and the Bipartisan Infrastructure Law, could help American families save billions on electricity bills through 2030. 

Future annual tables may add or remove certain types or categories of facilities based on expert analysis from the National Laboratories, in consultation with inter-agency and other experts. 

IRS Circular 230 Required Notice‐‐IRS regulations require that we inform you that to the extent this communication contains any statement regarding federal taxes, that statement was not written or intended to be used, and it cannot be used, by any person (i) for the purpose of avoiding federal tax penalties that may be imposed on that person, or (ii) to promote, market or recommend to another party any transaction or matter addressed herein. 

IRS Updates Guidance on Domestic Content Bonus Credit 

In Brief  

  • Modifications in Notice 2025-08 
  • Clarifications and Reclassifications 
  • Preservation of Previous Modifications 

The IRS has issued Notice 2025-08 on February 18th, 2025, which introduces significant updates to the elective safe harbor for the Domestic Content Bonus Credit. This notice modifies the previous guidance provided in Notice 2024-41 and Notice 2023-38.  

Modifications in Notice 2025-08  

Notice 2025-08 updates the tables in sections 4.04(1)-(3) of Notice 2024-41, providing new associated cost percentages for manufactured product components. These updates reflect improved default values that align more closely with the characteristics and costs of applicable project components in the marketplace, as analyzed by the Department of Energy. 

Clarifications and Reclassifications 

The new notice clarifies the rules and defined terms related to the Domestic Content Bonus Credit. It also reclassifies manufactured products and manufactured product components, ensuring that taxpayers have a clearer understanding of how to classify and calculate the domestic cost percentage for their projects. 

Preservation of Previous Modifications 

Notice 2025-08 preserves the modifications made in section 3 of Notice 2024-41 to Table 2 in Notice 2023-38. This ensures continuity and consistency in the application of the Domestic Content Bonus Credit, allowing taxpayers to rely on the established safe harbor tables for projects beginning construction up to 90 days after the release of further guidance. 

These updates are part of the IRS’s ongoing efforts to provide clear and practical guidance for taxpayers seeking to claim the Domestic Content Bonus Credit for their qualified facilities, energy projects, or energy storage technologies. 

IRS Circular 230 Required Notice‐‐IRS regulations require that we inform you that to the extent this communication contains any statement regarding federal taxes, that statement was not written or intended to be used, and it cannot be used, by any person (i) for the purpose of avoiding federal tax penalties that may be imposed on that person, or (ii) to promote, market or recommend to another party any transaction or matter addressed herein.