Safe harbor

The Internal Revenue Service recently issued its long-awaited guidance on how to determine whether a clean energy project uses too much equipment from Chinese or other prohibited foreign entities to qualify for valuable federal clean energy tax.

It’s no secret the solar industry has been stockpiling components such as panels and racking since before the Inflation Reduction Act. Under threat of a shortened runway to qualify for credits recently made reality with the passage of the reconciliation bill, the trend has very definitely accelerated.

Every company invested in our nation’s clean energy transition is aware that 2019 is the last year that solar energy can take advantage of the 30% Investment Tax Credit (ITC) under Internal Revenue Code