IRS Releases Final Regulations Under Section 48 Of The Code

The Internal Revenue Service ("IRS") and Department of the Treasury last week released final regulations (the "Final Regulations") relating to investment tax credits under Section 48 of the (the "ITC") of the Internal Revenue Code (the "Code"). The release of the Final Regulations follows the issuance of proposed regulations in November 2023 (the "Proposed Regulations"), which we described here. The Final Regulations are available here.

The Final Regulations largely adopt the Proposed Regulations, with a few exceptions. Mandatory applicability dates differ slightly between the various provisions of the proposed regulations, and the regulations provide some flexibility for taxpayers to apply them to projects that are already under construction or in service.