SECTION 1. PURPOSE

.01 This notice provides additional guidance to clarify and modify Notice 2023-18, 2023-10 I.R.B. 508, which established the program under § 48C(e) (1) of the Internal Revenue Code (Code) ¹

to allocate $10 billion of credits ($4 billion of which may be allocated only to projects located in § 48C(e) Energy Communities Census Tracts ² ) for qualified investments in eligible qualifying advanced energy projects (§ 48C(e) program). The Department of the Treasury (Treasury Department) and the Internal Revenue Service (IRS) released Notice 2023-18 on February 13, 2023, to establish the § 48C(e) program and to provide initial program guidance.

.02 The additional guidance contained in this notice provides general guidance for the § 48C(e) program, including (1) definitions of the term “facility” for purposes of §§ 48C and 45X, (2) clarification regarding projects placed in service prior to being awarded an allocation of qualifying advanced energy project credits (§ 48C credits), (3) the process for submitting concept papers and joint applications for Department of Energy (DOE) recommendations and for IRS § 48C(e) certifications (§ 48C(e) applications), (4) information regarding § 48C(e) Energy Communities Census Tracts, (5) the selection criteria used to evaluate whether a project merits a DOE recommendation, (6) the procedure for informing the IRS and the DOE of a significant change in plans for a project that has received an allocation of § 48C credits, and (7) the disclosure of certain information. In addition, this notice

provides information regarding when the DOE eXCHANGE portal, an online application portal available at https://48C-ex- change.energy.gov/ (or any successor interface) and referred to in this notice and its appendices as the “eXCHANGE portal,” will begin accepting concept papers and the timeline for submitting a § 48C(e) application.

.03 This notice republishes Appendices A and B included in Notice 2023-18 with certain modifications. Appendix A is modified to provide minor clarifications to definitions and examples. Appendix B is modified to provide technical review criteria, and application content requirements. This notice also includes a new Appendix C that provides a list of § 48C(e) Energy Communities Census Tracts.

.04 As stated in section 1.03 of Notice 2023-18, 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, the Treasury Department and the IRS anticipate allocating up to $4 billion of § 48C credits with approximately $1.6 billion in § 48C credits to be allocated to projects located in § 48C(e) Energy Communities Census Tracts. 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 projects located in § 48C(e) Energy Communities Census Tracts over the duration of the § 48C(e) program, depending upon applications received, the Treasury Department and the IRS may not allocate exactly 40 percent of the total § 48C credits allocated in Round 1 to projects located in § 48C(e) Energy Communities Census Tracts. To be considered for an allocation of § 48C credits in the § 48C(e) program for Round 1, taxpayers must first submit concept papers to the IRS through the eXCHANGE portal. Following submission of a concept paper, DOE will provide a letter encouraging or discouraging the taxpayer’s submission of a § 48C(e)

application. DOE begins the acceptance process for a taxpayer’s § 48C(e) application 7 days after the date of the letter of encouragement or discouragement. To be considered for the § 48C(e) program, a taxpayer’s § 48C(e) application must be submitted no later than 45 days after DOE begins the acceptance process for the taxpayer’s § 48C(e) application. The IRS will make all Round 1 allocation decisions by March 31, 2024.