IR-2024-140, May 16, 2024 WASHINGTON — The Department of Treasury and the Internal Revenue Service today released Notice 2024-41 PDF to modify an existing safe harbor and to provide a new elective safe harbor for determining the Domestic Content Bonus Credit amounts. The Department of Treasury and the IRS released Notice 2023-38 on May 12, 2023, which provides rules that taxpayers may rely on to qualify for the Domestic Content Bonus Credit amounts and related record-keeping and certification requirements. Today’s notice modifies the existing safe harbor provided in “Table 2--Categorization of Applicable Project Components” in Notice 2023-38 to include hydropower and pumped hydropower storage facilities, redesignates the “Utility scale photovoltaic system” Applicable Project as the “Ground-mount and rooftop photovoltaic system,” and includes certain manufactured product components for previously listed applicable projects. Notice 2024-41 also provides a new safe harbor that allows taxpayers to elect to use the classifications of components and cost percentages (in lieu of direct costs of the manufacturer as provided in Notice 2023-38) to determine if the adjusted percentage rule is satisfied. Notice 2024-41 also requests comments regarding the new elective safe harbor to inform any future updates. More information may be found on the Inflation Reduction Act of 2022 page on IRS.gov.
