IRS and Treasury Publish Final Regulations for Advanced Manufacturing Production Tax Credits

On November 19, 2024, Cravath prepared a memo for its clients entitled “IRS and Treasury Publish Final Regulations for Advanced Manufacturing Production Tax Credits.” The memo examines the United States Department of the Treasury and the Internal Revenue Service’s recently issued final regulations for Advanced Manufacturing Production Tax Credits under Section 45X of the Internal Revenue Code.

The 45X credits were created under the Inflation Reduction Act of 2022 to strengthen U.S. energy security by incentivizing the domestic production of clean energy components, including solar and wind, inverters, battery parts and critical minerals. The final regulations largely adopt the proposed regulations published on December 15, 2023, but they provide several important clarifications and modifications that enhance taxpayers’ ability to effectively utilize the 45X credits.

Please click here to read the memo.