SECTION 1. PURPOSE

The Department of the Treasury (Treasury Department) and the Internal Revenue Service (IRS) intend to propose regulations

(forthcoming proposed regulations) addressing the process by which the Secretary of the Treasury or her delegate (Secretary) will implement the statutorily-required exceptions to the phaseouts under §§ 45(b) (10), 45Y(g)(12), 48(a)(13), and 48E(d) (5) of the Internal Revenue Code (Code). ¹ Such phaseouts apply to credits determined under § 45, 45Y, 48, or 48E with respect to property placed in service by an applicable entity, as defined in § 6417(d)(1)(A) (Applicable Entity), making an elective payment election under § 6417 with respect to such credits if the property does not satisfy the domestic content requirements under those provisions of the Code (Statutory Elective Payment Phaseouts). If the Statutory Elective Payment Phaseouts apply, the amount of an elective payment received by an Applicable Entity making an election under § 6417 with respect to such property is reduced.

This notice provides transitional procedures for taxpayers to claim the statutory exceptions to the application of the Statutory Elective Payment Phaseouts for Applicable Entities making an election under § 6417 with respect to Applicable Credit Property (that is, qualified facilities under §§ 45 and 45Y, energy projects under § 48, or qualified investments in qualified facilities or energy storage technologies under § 48E), but only if the construction of the Applicable Credit Property begins before January 1, 2025. The Treasury Department and the IRS will treat an attestation, described in section 5.02, provided by an Applicable Entity, as establishing that one or both statutory exceptions to the application of the Statutory Elective Payment Phaseouts are met with respect to Applicable Credit Property the construction of which begins before January 1, 2025. This notice also requests comments to inform the development of the forthcoming proposed regulations regarding the process by which the statutorily-required exceptions will be provided to the Statutory Elective Payment Phaseouts for Applicable Entities making an election under § 6417 with respect to Applicable Credit Property the construction of which begins on or after January 1, 2025.