Treasury Department and IRS Release Guidance on the New Domestic Content Bonus Credit

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The domestic content bonus credit (the DC Bonus), which was introduced by the Inflation Reduction Act of 2022 (the IRA), provides an enhanced tax credit for renewable energy and storage projects constructed with sufficient US-sourced materials and components (the Domestic Content Requirement). The DC Bonus is available for projects that qualify for the production tax credit (PTC) under Section 45 of the Internal Revenue Code of 1986, as amended (the Code), the investment tax credit (ITC) under Section 48 of the Code, the clean electricity production credit (CEPC) under Section 45Y of the Code, or the clean electricity investment credit (CEIC) under Section 48E of the Code.