SECTION 5. CONCEPT PAPERS

AND § 48C(e) APPLICATIONS

.01 In General . For each project for which a taxpayer seeks a § 48C(e) allocation for Round 1, the taxpayer must use the eXCHANGE portal to submit to the IRS (1) a concept paper for DOE consideration and (2) the § 48C(e) application. If a § 48C(e) application does not (1) propose a qualifying advanced energy project (as described in Appendix A) or (2) include all of the information required in Notice 2023-18 and this notice (including the additional § 48C(e) program guidance contained in the appendices), DOE may either decline to consider the § 48C(e)

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application or request that the applicant resubmit its § 48C(e) application with the missing information. If DOE does not provide a recommendation to the IRS on the § 48C(e) application, the IRS will not consider the § 48C(e) application.

.02 Taxpayer submissions . Notice 2023-18 requires taxpayers to submit their concept papers and § 48C(e) applications through the eXCHANGE portal. See Appendix B for additional information regarding the application process.

.03 Program Timeline . Generally, the § 48C(e) program will proceed as follows:

(1) A taxpayer submits a concept paper through the eXCHANGE portal. The eXCHANGE portal will open no later than June 30, 2023. Taxpayers must submit concept papers prior to 12:00 PM (noon) Eastern Time on July 31, 2023.

(2) DOE reviews the concept paper and sends the taxpayer a letter encouraging or discouraging the submission of a § 48C(e) application. After receiving a letter of encouragement or discouragement from DOE, the taxpayer determines whether to submit a § 48C(e) application. All taxpayers who submit concept papers are eligible to submit a § 48C(e) application, regardless of DOE’s response to its concept paper.

(3) Taxpayers submit § 48C(e) applications through the eXCHANGE portal. See Appendix B for additional information.

(4) DOE reviews the § 48C(e) applications for compliance with eligibility and other threshold requirements.

(5) If the § 48C(e) application complies with all eligibility and threshold requirements, DOE conducts a technical review of the application to form a DOE recommendation.

(6) DOE provides a recommendation to the IRS regarding the acceptance or rejection of each § 48C(e) application and a ranking of all § 48C(e) applications.

(7) The IRS makes a decision regarding the acceptance or rejection of each § 48C(e) application based on DOE’s recommendation and ranking. The IRS notifies each taxpayer that submitted a § 48C(e) application of the outcome by sending a letter allocating § 48C credits in the case of an acceptance (Allocation Letter) or letter denying the requested allocation in the case of a rejection (Denial Letter). The IRS will make all Round 1

allocation decisions by March 31, 2024. In the case of an acceptance, the amount of § 48C credits allocated to a project will be based on the taxpayer’s qualified investment in the qualifying advanced energy project and whether the taxpayer intends to apply for and receive an allocation of § 48C credits calculated at the 30 percent credit rate ( see Notice 2023-18, section 5.07). In the case of a denial, a taxpayer may request a debriefing with DOE regarding its review of the taxpayer’s § 48C(e) application. The Denial Letter will include instructions for requesting a DOE debriefing.

(8) To be eligible to claim a § 48C credit allocated under the § 48C(e) program with respect to a taxpayer’s § 48C Facility, the earliest that the taxpayer may place in service the § 48C Facility is after receiving the Allocation Letter with respect to that § 48C Facility. See section 4 of this notice.

(9) Within 2 years of receiving an Allocation Letter, a taxpayer must notify DOE that the certification requirements have been met by submitting this information through the eXCHANGE portal. See Appendix B for additional information.

(10) DOE notifies the taxpayer and the IRS that it has received the taxpayer’s notification that the certification requirements have been met.

(11) The IRS certifies the § 48C Facility by sending a letter (Certification Letter).

(12) Within 2 years of receiving the Certification Letter, the taxpayer notifies DOE that the § 48C Facility has been placed in service by submitting such information through the eXCHANGE portal. See Appendix B for additional information. If the taxpayer has not placed the § 48C Facility in service within the required 2-year period or has not notified DOE that the § 48C Facility has been placed in service within the required 2-year period, then the § 48C credit allocated to the taxpayer’s project is forfeited.

(13) DOE notifies the taxpayer and the IRS that it has received the taxpayer’s notification that the § 48C Facility has been placed in service or notification that the taxpayer will not place the § 48C Facility in service within the required 2-year period. See Section 5.09 of Notice 2023-18. (14) If the taxpayer has placed the § 48C Facility in service within the

required 2-year period and has notified DOE, then the taxpayer claims the § 48C credit on its Federal income tax return for the taxable year in which the § 48C Facility was placed in service.

(15) If the taxpayer chooses to withdraw a submission at any phase of the § 48C(e) program (whether at the concept paper phase, the § 48C(e) application phase, the post-Allocation Letter phase, or the post-Certification Letter phase), the taxpayer must provide a formal withdrawal notification through the eXCHANGE portal.