The Department of Treasury and the IRS have issued a notice of intent to propose guidance for rules that taxpayers must satisfy to in order to qualify for domestic content bonus credit amounts. The notice also provides proposed rules for the required record keeping and certification.

Domestic content is generally defined as steel, iron or manufactured products that are manufactured or produced in the United States, according to CPA Practice Advisor.

Under the terms of Inflation Reduction Act, domestic content bonus credit amounts are provided for certain qualified facilities or energy projects placed in service after Dec. 31, 2022. The law also added new sections that include a domestic content bonus credit amount for certain investments in qualified facilities or energy storage technologies placed in service after Dec. 31, 2024.

The notice also describes a safe harbor regarding the classification of certain components in representative types of qualified facilities, energy projects or energy storage technologies “the construction of which begins before the date that is 90 days after the date of publication of the forthcoming proposed regulations in the Federal Register,” the notice states.