The IRS is seeking public feedback by Dec. 3 on different aspects related to the extensions and enhancements of energy tax benefits contained in the federal Inflation Reduction Act.
Nearly three-quarters of the law’s $369 billion climate change investment – $270 billion – is delivered through tax incentives. The IRS anticipates the comments it receives will help the agency draft guidance that best reflects the needs of taxpayers entitled to claim energy credits.
The Notices issued Thursday seek comment from the public on tax incentives related to: (1) commercial clean vehicles and alternative fuel vehicle refueling property, (2) carbon capture, and (3) clean hydrogen and clean fuel production. Those interested in providing feedback should follow the instructions in the notices and reply by Dec. 3.
In addition to these Notices requesting public comment, the U.S. Department of Treasury has also been hosting a series of roundtable discussions with key stakeholder groups. These groups represent thousands of companies, millions of workers, and trillions of dollars in investment assets, as well as climate and environmental justice advocates, labor unions, community-based organizations, and other key stakeholders.
The Inflation Reduction Act, enacted in August, covers a variety of new and reinstated tax laws that will affect individuals and businesses. One provision that changed the eligibility rules to claim a tax credit for clean vehicles took effect as soon as the law was signed. Other benefits will take effect in subsequent tax years.
The latest information on energy guidance and other issues related to the Inflation Reduction Act is available on a special page on IRS.gov.