Key Takeaways | An Overview of the IRS’s Domestic Content Guidance

During this webinar, Partners Heather Cooper and Philip Tingle  discussed the Internal Revenue Service’s recent guidance on the domestic content adder and shared practical implications for taxpayers seeking to claim it.

Top takeaways included:

• Notice 2024-41 simplifies the approach to demonstrating domestic content adder eligibility by providing an elective safe harbor for three technologies: solar, onshore wind and battery energy storage systems.
• Taxpayers can elect to use predetermined classifications of components and cost percentages rather than determining the manufacturer’s direct costs, which was previously a major hurdle to claiming the adder.
• The notice also provides a weighted formula for projects that mix foreign and domestic manufactured product components and expands the list of applicable projects to include hydropower and pumped hydropower storage facilities.