Treasury officials indicated at a recent conference that the second round of allocations for the advanced energy property credit program under Section 48C would be launched in 2024.
The 30% credit is available for a broad range of activities that might not fit under the specific definitions for other energy credits, but taxpayers must apply for a limited $10 billion allocation. The IRS will begin accepting concept papers for the first round of funding on May 31, 2023, with a deadline of July 31, 2023. The IRS has offered guidance on how the application process will work (see our previous story), but additional guidance is expected before the process opens.
Taxpayers with potentially qualifying projects may want to consider applying in the first round, as the IRS is offering to debrief taxpayers who are rejected to understand the strength and weaknesses of their application. This could provide an opportunity for taxpayers to improve their chances at funding when round two opens in 2024.
Contact:
Tax professional standards statement
This content supports Grant Thornton LLP’s marketing of professional services and is not written tax advice directed at the particular facts and circumstances of any person. If you are interested in the topics presented herein, we encourage you to contact us or an independent tax professional to discuss their potential application to your particular situation. Nothing herein shall be construed as imposing a limitation on any person from disclosing the tax treatment or tax structure of any matter addressed herein. To the extent this content may be considered to contain written tax advice, any written advice contained in, forwarded with or attached to this content is not intended by Grant Thornton LLP to be used, and cannot be used, by any person for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.
The information contained herein is general in nature and is based on authorities that are subject to change. It is not, and should not be construed as, accounting, legal or tax advice provided by Grant Thornton LLP to the reader. This material may not be applicable to, or suitable for, the reader’s specific circumstances or needs and may require consideration of tax and nontax factors not described herein. Contact Grant Thornton LLP or other tax professionals prior to taking any action based upon this information. Changes in tax laws or other factors could affect, on a prospective or retroactive basis, the information contained herein; Grant Thornton LLP assumes no obligation to inform the reader of any such changes. All references to “Section,” “Sec.,” or “§” refer to the Internal Revenue Code of 1986, as amended.
More tax hot topics
No Results Found. Please search again using different keywords and/or filters.
Share with your network
Share