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ARTICLE · 27 FEBRUARY 2025

Navigating The Domestic Content Requirements Under Evolving IRS Guidance

Holland & Knight
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The IRS issued Notice 2025-08 on Jan. 16, 2025, which provides updated guidance regarding the domestic content requirements under Sections 45, 48, 45Y and 48E of the Internal Revenue Code...

United StatesTax
Holland & Knight
Holland & Knight
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Highlights

  • Under the investment tax credits (Sections 48 and 48E of the Internal Revenue Code) and production tax credits (Sections 45 and 45Y), a domestic content bonus credit amount is available if certain domestic content requirements are met.
  • Generally speaking, the domestic content requirements are met if steel, iron and manufactured products of an Applicable Project (qualified facility or energy property) were produced in the U.S. as determined under IRS guidance.
  • On Jan. 16, 2025, the IRS issued its third notice concerning the domestic content requirements. The new notice, Notice 2025-08, provides a "First Updated Elective Safe Harbor," modifying a previous safe harbor provided by the IRS.

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