Treasury publishes final rule for Advanced Manufacturing Production Credit

The Internal Revenue Service and Department of the Treasury published a final rule that sets forth final regulations regarding the advanced manufacturing production credit established by the Inflation Reduction Act of 2022 to incentivize the production of eligible components within the United States. “Eligible components include certain solar energy components, wind energy components, inverters, qualifying battery components, and applicable critical minerals. These final regulations also address specific recordkeeping and reporting requirements. These final regulations affect eligible taxpayers who produce and sell eligible components and intend to claim the benefit of an advanced manufacturing production credit, including by making elective payment or credit transfer elections,” Treasury stated in its rule document. Publicly traded companies in the solar energy space that may be impacted by the rule include Array Technologies (ARRY), Canadian Solar (CSIQ), Emeren (SOL), FTC Solar (FTCI), First Solar (FSLR), JinkoSolar (JKS), Maxeon Solar (MAXN), Shoals Technologies (SHLS), SolarEdge (SEDG) and SunPower (SPWR).