On October 5, 2022, the Internal Revenue Service (IRS) issued six notices requesting comments on different aspects of extensions and enhancements of energy tax benefits under the Inflation Reduction Act (IRA).[1] The announcement is the first formal step in the process of implementing the IRA. Most of the IRA’s $369 billion for energy and climate efforts are in the form of tax credits. The value of these tax credits is estimated at $270 billion. The six notices focus on the production tax credit (PTC) and investment tax credit (ITC), credit enhancements that would boost the credit value for meeting certain prevailing wage and domestic content requirements, home and building incentives, clean vehicle credits, manufacturing credits to help build clean energy supply chains, and credit monetization.

The Treasury Department also released a fact sheet that outlined the IRS’s implementation process. The department said it will convene roundtables with industry, labor unions, and climate and environmental justice advocates over the coming weeks. The Treasury stated that it would ideally like comments from the public on the new notices within 30 days.

[1] https://www.irs.gov/newsroom/irs-asks-for-comments-on-upcoming-energy-guidance