Notice 2024-41 further provides a new
SECTION 6. GLOSSARY OF CERTAIN TERMS USED IN THIS NOTICE
Internal Revenue Bulletin 2026-11 · 2026-10-03 edition · updated 2026-10-04 · United States
| Term | Definition |
|---|---|
| 2023-2025 Safe Harbor Tables | Collectively, the tables provided in sections 5.05, 5.06, 6.02, and 7.02 of Notice 2025-08 (Notice 2025-08 Tables), section 3.02 in Notice 2024-41 for a Hydropower Facility, or a Pumped Hydropower Storage Facility, and section 3.04 in Notice 2023-38 for an Ofshore Wind Facility. |
| 80/20 Rule | Sections 1.45Y-4(d)(1) and 1.48E-4(c)(1) provide that a qualifed facility or EST, as applicable, may qualify as originally placed in service even if it contains some used components of property within the unit of qualifed facility, provided the fair market value of the used components of the unit of qualifed facility or EST is not more than 20 percent of the total value of the unit of qualifed facility (that is, the cost of the new components of property plus the fair market value of the used components of property within the unit of qualifed facility). |
| Assigned Cost Percentages | The associated cost percentages for each of the identifed MPs and MPCs that may be found in the identifed Applicable Projects. |
| Average Costs | The average of the Direct Costs of MPs and MPCs of the same type that were incorporated into ESTs that were placed in service, or the average of the Direct Material Costs of Constituent Materials incorporated in or consumed in the production of eligible components produced in the same specifed period of time. |
Bulletin No. 2026–11 681 March 9, 2026
| Term | Definition |
|---|---|
| Clean Electricity MACR | The amount (expressed as a percentage) equal to the quotient of–(I) an amount equal to–(aa) the total direct costs to the taxpayer attributable to all manufactured products (including components) which are incorporated into the qualifed facility or EST upon completion of construction, minus (bb) the total direct costs to the taxpayer attributable to all manufactured products (including components) which are–(AA) incorporated into the qualifed facility or EST upon completion of construction, and (BB) mined, produced, or manufactured by a PFE, divided by (II) the amount described in (aa). |
| Constituent Materials | Constituent elements, materials, or subcomponents of the eligible component that are considered direct materials costs under § 1.263A-1(e)(2)(i)(A). |
| Direct Costs | The taxpayer’s direct costs attributable to the MPs (including MPCs) included in the qualifed facility or EST. |
| Direct Material Costs | The total costs of a Constituent Material that is paid or incurred (within the meaning of § 461 and any regulations issued under § 263A) by the taxpayer for the production of an eligible component. |
| Domestic Content Requirement | Sections 45(b)(9), 45Y(g)(11), 48(a)(12), and 48E(a)(3)(B) provide an increase to the amount of a credit determined under §§ 45, 45Y, 48, and 48E, respectively, for a taxpayer whose qualifed facility under §§ 45 or 45Y, energy project under § 48, or qualifed investment with respect to a qualifed facility or EST under § 48E satisfes the domestic content requirement set forth in § 45(b)(9)(B)(i). |
| Eligible Component MACR | The amount (expressed as a percentage) equal to the quotient of–(I) an amount equal to–(aa) with respect to an eligible component, the total direct material costs that are paid or incurred (within the meaning of § 461 and any regulations issued under § 263A) by the taxpayer for production of such eligible component, minus (bb) with respect to an eligible component, the total direct material costs that are paid or incurred (within the meaning of § 461 and any regulations issued under § 263A) by the taxpayer for production of such eligible component that are mined, produced, or manufactured by a PFE, divided by (II) the amount described in (aa). |
| EST | Energy storage technology. |
| Incremental Production Rule | Section 45Y(b)(1)(C) provides that the term “qualifed facility” includes a new unit or additions of capacity placed in service after December 31, 2024, in connection with an existing facility used for the generation of electricity with a greenhouse gas emissions rate not greater than zero that was placed in service before January 1, 2025, but only to the extent of the increased amount of electricity produced at the facility by reason of such new unit or additions of capacity. |
| Listed eligible component | An eligible component listed as an Applicable Project Component in the 2023-2025 Safe Harbor Tables. |
| Listed MPs | In the 2023-2025 Safe Harbor Tables_with_ cost percentages, the column titled “Applicable Project Component” or “APC” may be considered as identifying the types of MPs within the qualifed facility or EST. |
| Listed MPCs | In the 2023-2025 Safe Harbor Tables_with_ cost percentages, the column titled “Manufactured Product Component” or “MPC” may be considered as identifying the types of MPCs within the qualifed facility or EST. |
| Listed MPs and MPCs | In the 2023-2025 Safe Harbor Tables_without_ cost percentages, the column titled “Applicable Project Component” may be considered as identifying the types of MPs and MPCs within the qualifed facility or EST |
| Listed qualifed facility or EST | A qualifed facility or EST listed as an Applicable Project in the 2023-2025 Safe Harbor Tables. |
| MACR | Material assistance cost ratio. |
| MP | Manufactured product. |
| MPC | Manufactured product component. |
| PFE | Prohibited foreign entity. |
March 9, 2026 682 Bulletin No. 2026–11
| Term | Definition |
|---|---|
| PFE Direct Costs | The Direct Costs attributable to the each of the identifed MPs and MPCs that were PFE Produced. |
| PFE Direct Material Costs | The Direct Material Costs attributable to each PFE Sourced Constituent Material. |
| PFE Produced | An MP or MPC mined, manufactured, or produced by a PFE. |
| PFE Production Percentage | The percentage of the MPs and MPCs of the same type that were PFE Produced or PFE Sourced and that were, as applicable, incorporated into the same type of ESTs placed in service during a specifed period of time or the percentage of the Constituent Materials incorporated in or consumed to produce the same type of eligible components during a specifed period of time. |
| PFE Sourced | Constituent Material supplied by a PFE. |
| PFE Total Direct Material Costs | The aggregate amount of the PFE Direct Material Costs attributable to any PFE Sourced Constituent Materials. |
| PFE Total Direct Costs | The aggregate amount of direct costs attributable to (A) any PFE Produced MP, and (B) any PFE Produced MPC included in any MP. |
| Total Direct Costs | The total direct costs to the taxpayer attributable to all MPs (including MPCs) which are incorporated into the qualifed facility or EST upon completion of construction. |
| Total Direct Material Costs | The total direct material costs for all Constituent Materials that are paid or incurred (within the meaning of § 461 and any regulations issued under § 263A) by the taxpayer for the production of the eligible component. |
| Total Percentage | For purposes of calculating the Clean Electricity MACR, the sum of the Assigned Cost Percentages for each Listed MPC and the Assigned Cost Percentages for Production of each Listed MP within the Applicable Project. For purposes of calculating the Eligible Component MACR, the sum of the Assigned Cost Percentages for each Listed MPC within the Listed eligible component and the Assigned Cost Percentage for Production of the Listed eligible component. |
| Total PFE Percentage | For purposes of calculating the Clean Electricity MACR, the sum of the Assigned Cost Percentages of the PFE Produced MPCs and the Assigned Cost Percentages for Production of each PFE Produced MP. For purposes of calculating the Eligible Component MACR, the sum of the Assigned Cost Percentages of the PFE Sourced MPCs within the Listed eligible component. |
| Total QuantityCM | The total quantity of Constituent Materials of the same type that were incorporated into the same type of eligible component produced during a specifed period of time. |
| Total QuantityMP&MPC | The total quantity of MPs or MPCs of the same type that were incorporated into the same type of EST placed in service during a specifed period of time. |
| Total QuantityPFE-CM | The total quantity of PFE Sourced Constituent Materials of the same type that were incorporated into the same type of eligible component produced during a specifed period of time. |
| Total QuantityPFE-MP&MPC | The quantity of PFE Produced MPs or MPCs of the same type that were incorporated into the same type of EST placed in service during a specifed period of time. |
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