SECTION 1. PURPOSE

.01 This notice establishes the program under § 48C(e)(1) of the Internal Reve­ nue Code (Code) ¹ to allocate $10 billion of credits ($4 billion of which may be allocated only to projects located in cer­ tain energy communities) for qualified in­ vestments in eligible qualifying advanced energy projects (§ 48C(e) program). The goal of the § 48C(e) program is to ex­ pand U.S. manufacturing capacity and quality jobs for clean energy technologies (including production and recycling), to reduce greenhouse gas emissions in the U.S. industrial sector, and to secure do­ mestic supply chains for critical materials (including specified critical minerals) that serve as inputs for clean energy technolo­ gy production.

.02 This notice and its appendices pro­ vide the initial program guidance for the § 48C(e) program. The Department of the Treasury (Treasury Department) and the Internal Revenue Service (IRS) intend to issue a supplemental notice and appendi­ ces (additional § 48C(e) program guid­ ance) by May 31, 2023.

.03 The Treasury Department and the IRS anticipate providing at least two allocation rounds under the § 48C(e) program. For the first allocation round (Round 1) of the § 48C(e) program, which will begin on May 31, 2023, the Treasury Department and the IRS antic­ ipate allocating $4 billion of qualifying advanced energy project credits (§ 48C credits) with approximately $1.6 billion in § 48C credits to be allocated to proj­ ects located in certain energy communi­ ties. Although the Treasury Department and the IRS intend to allocate a total of $10 billion of § 48C credits with not less than $4 billion of § 48C credits to proj­

ects located in certain energy commu­ nities over the duration of the § 48C(e) program, depending upon applications received, the Treasury Department and the IRS may not allocate exactly 40 per­ cent of the total § 48C credits allocated in Round 1 to projects located in certain energy communities. To be considered for an allocation of § 48C credits in the § 48C(e) program for Round 1, taxpayers must submit concept papers to the De­ partment of Energy (DOE) by July 31, 2023. Following submission of a concept paper, DOE will encourage or discourage taxpayers from submitting a joint appli­ cation for DOE recommendation and for IRS § 48C(e) certification (§ 48C(e) ap­ plication).