SEIA: Clarity needed in these areas to best implement IRA

investment tax credit

The Inflation Reduction Act is law, and now the real fun begins — implementing it. The Solar Energy Industries Association (SEIA) filed responses to the U.S. Department of the Treasury’s request for public comments on the clean energy tax provisions, highlighting key areas in which clarity is most needed.

“The clean energy tax credit provisions in the Inflation Reduction Act are designed to create jobs and speed our energy transition in a just and equitable fashion over the next decade, making effective and durable implementation a critical part of our clean energy future,” said Sean Gallagher, vice president of state and regulatory affairs at SEIA. “SEIA’s regulatory and policy experts are deeply involved in the public comment process and continue to work hard to identify gaps and formulate policy recommendations that will help clean energy companies and the administration maximize the benefits of this law.”

There are several important tax provisions in the IRA that require more clarity, including domestic content specifications and whether companies can apply existing “Buy America” domestic content regulations to solar and storage facilities.

SEIA is also seeking a fair and open application process for the low-income community allocated tax credits that includes all market segments and contains strong consumer protection measures for low-income households.

SEIA also is encouraging Treasury to use transparent, easy to understand prevailing wage rates and to make reasonable accommodations on apprenticeship programs, such as defined geographic areas where employers should seek out apprenticeship programs.

The solar and storage industry and other stakeholders are responding to relevant requests for information and proposed rules about the IRA, and anticipates requests from the U.S. Department of Labor, the U.S. Department of Energy (DOE), the U.S. Environmental Protection Agency (EPA), the U.S. Department of Agriculture, among others.

“Collaboration will be a key part of this process, and we’re calling on federal agencies to work with industry at every stage of implementation and move expeditiously to provide guidance,” Gallagher said.

SEIA is currently reviewing EPA’s recent request for information on its Greenhouse Gas Reduction Fund and plans to comment on this program and future requests from DOE and other agencies.

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  • November 26, 2022 10:55:26

    a. I would like to see Companies offering “free” systems and financing packages should be required to explain and divulge the meaning of, use of and value of all Solar Energy cashflows and who is the beneficiary: the owner, lessee or lessor. Understanding these differences including who is getting the tax credits, Renewable Energy Credits, payback between ownership and leasing, can be confusing, and rarely even mentioned yet alone explained to end users (and who controls your ESS is a totally stealth operation). In view of this being taxpayers money, their should be “Sunshine” regulations and full disclosure. Our industry is quickly becoming one of “tin men” sales techniques
    b. Do residential systems require prevaling rate? What is the classification; electrician, rooferf, metal worker, glazer? Ive been through this over my 50 years in business.
    c. Does the 10% USA content apply to residential? DOE, Nrel, Siea; no one knows for sure.
    Thanks for reading my questions