On May 17, the IRS issued new guidance simplifying the calculation process for three common
technologies eligible for the domestic content bonus under Section 45 production tax credit
(PTC) and Section 48 investment tax credit (ITC).
Notice 2024-41 introduces an elective safe harbor that allows taxpayers to more easily
calculate the 10% bonus for projects using specified thresholds of U.S.-sourced content.
The notice provides elective safe harbors for solar photovoltaic (PV) systems, onshore wind
facilities, and battery energy storage systems (BESS). In a separate press release, the Treasury
indicated plans to supplement this guidance with safe harbor tables for additional sectors,
including offshore wind facilities.
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