The new CHP tax credits created under the Inflation Reduction Act (IRA) are a huge new opportunity for Combined Heat and Power, but Congress did not resolve all the details of those credits. On November 4, the Combined Heat and Power Alliance responded to the notice from the Internal Revenue Service (IRS) seeking comments on different aspects of the IRA tax provisions. Of the six notices issued, we responded to two:
- Notice 2022-49, which requests comments on certain energy generation incentives.
- Notice 2022-51, which requests comments on prevailing wage, apprenticeship, domestic content, and energy communities requirements.
The CHP Alliance commends the IRS for conducting this open commenting period, allowing interested parties to help in drafting the guidance items most reflective of the needs of taxpayers entitled to claim energy credits. We look forward to the potential for CHP and WHP deployment in the coming years given the robust credits available in the IRA, and are excited to work closely with the Department of Treasury on these matters.
You can view and download our Notice 2022-49 comments here and our Notice 2022-51 comments here.