SECTION 3. OVERVIEW

OF MODIFICATIONS TO NOTICE 2024-41

The First Updated Elective Safe Harbor modifies Notice 2024-41 in five ways.

First, section 5 of this notice provides several modifications to Notice 2024-41, including expanding the Solar PV Table of Table 1 into two distinct tables, one for

2 Unless otherwise specified, capitalized terms used throughout this notice are defined in Notice 2023-38 and Notice 2024-41. The term “Applicable Project” includes a qualified facility described in § 45Y(b)(1)(C) or § 48E(b)(3)(B)(i).

3 For purposes of the First Updated Elective Safe Harbor, the Updated Assigned Cost Percentages for PV Solar, defined in section 3 of this notice, the associated cost percentages for the Land-Based Wind, which are the same cost values as the Assigned Cost Percentages provided in Notice 2024-41, and the Updated Assigned Cost Percentages for BESS, defined in section 7 below, are collectively defined as the Updated Assigned Cost Percentages.

Bulletin No. 2025–8 801 February 18, 2025

Third, section 7 of this notice provides several modifications to Notice 2024-41, including providing updated assigned cost percentages for the Manufactured Products and Manufactured Product Components relating to the Battery Electric Storage System (BESS) (Updated Assigned Cost Percentages for BESS), which Table 1 provided as the Assigned Cost Percentages for the (3) Battery Electric Storage System (BESS). Like the Assigned Cost Percentages, the Updated Assigned Cost Percentages apply to both grid-scale BESS and distributed BESS Applicable Projects.

Fourth, section 4 of the First Updated Elective Safe Harbor provides that a taxpayer with a qualified facility under § 45 or energy project under § 48 that is placed in service after December 31, 2022, and that meets the 80/20 Rule, or a qualified facility under §§ 45Y or 48E or energy storage technology under § 48E that is placed in service after December 31, 2024, and that meets the 80/20 Rule, may use the classifications and cost percentages in Table 1 or the First Updated Elective Safe Harbor (as applicable) to qualify for the domestic content bonus credit amount.

Fifth, the First Updated Elective Safe Harbor provides updated definitions for representative types of Applicable Projects and definitions for certain Applicable Project Components and Manufactured Product Components.