§25C Energy Efficient Home Improvement Credit
The §25C credit is available to taxpayers making qualified energy efficient home improvements—certain property like exterior doors, windows, central air conditioners, and heat pumps. Proposed regulations have been issued by the IRS, which apply to manufacturers seeking to become qualified manufacturers of specified property eligible for the credit and for taxpayers who place in service certain eligible home improvement property. A public hearing on the proposed rules will occur on January 21, 2025 at 10 a.m. ET. The credit was originally enacted in 2005 and was most recently modified under the IRA. The credit applies to eligible property placed in service through December 31, 2032.
In conjunction with the proposed regulations, the IRS has also provided Revenue Procedure 2024-31 describing the procedures necessary for a manufacturer to be considered a “qualified manufacturer” for purposes of manufacturing credit eligible property. Such manufacturers must register, enter into an agreement with the IRS, identify each item of eligible property with a PIN, label the items, and provide regular reports to the Secretary.
§45X Advanced Manufacturing Production Credit
The IRS has finalized proposed regulations for taxpayers who domestically produce and sell eligible components used in solar energy, wind energy, inverters, batteries, and applicable critical minerals under §45X. The final regulations implement the clean energy credit as promulgated in the Inflation Reduction Act of 2022 (IRA) and are applicable to eligible components produced and sold both after December 31, 2022 and within tax years ending on or after the date of the regulation’s publication in the federal register. According to the preamble of the regulations, the IRS preserved the form of the proposed regulations with certain revisions.
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