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ARTICLE · 11 NOVEMBER 2024

Treasury And IRS Issue Final Regulations On Section 45X

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On October 24, 2024, the US Department of Treasury ("Treasury") and the Internal Revenue Service ("IRS") released final regulations (the "Final Regulations")1 on the Section 45X Advanced Manufacturing Production Credit of the Internal Revenue Code (the "Code").

United StatesTax
Daniel T. Kiely
Daniel T. Kiely
Michelle M. Jewett
Michelle M. Jewett
Isaac L. Maron
Isaac L. Maron
JoonBeom Pae
JoonBeom Pae
Warren S. Payne
Warren S. Payne
Charlene S. Soleimani
Charlene S. Soleimani
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Meaghan Connors
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On October 24, 2024, the US Department of Treasury ("Treasury") and the Internal Revenue Service ("IRS") released final regulations (the "Final Regulations")1 on the Section 45X Advanced Manufacturing Production Credit of the Internal Revenue Code (the "Code").2 Section 45X, which was enacted in 2022 as part of the Inflation Reduction Act (the "IRA"), provides a production tax credit for "eligible components" of clean energy property, which include solar- and wind-energy components, inverters, qualifying battery components, and applicable critical minerals. The Final Regulations modify the proposed regulations that were published in December 2023 in a number of significant and taxpayer-favorable ways.3 This Legal Update discusses some key aspects of the Final Regulations—particularly as they relate to the proposed regulations—but does not address numerous refinements relating to certain technical requirements included in the Final Regulations.

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This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.

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