Domestic Content Rules for Direct Pay Continue to Lack Clarity and Certainty
LPPC continues to call on the US Treasury Department to provide clarity and certainty regarding domestic content rules for public power utilities, who are eager to utilize the direct pay energy tax credits included in the Inflation Reduction Act to build new clean energy projects.
“While still reviewing the latest US Treasury Department guidance, LPPC remains deeply concerned over the lack of clarity regarding the domestic content rules that public power utilities must adhere to if a system elects to use direct pay to fund a new clean energy project. Public power systems are eager to own and build new clean energy generation through the direct pay mechanism included in the Inflation Reduction Act, but they face the significant risk of having the entire or a significant portion of the tax credit revoked if domestic content provisions are not met for projects beginning construction in 2024 onwards. LPPC will continue to call on the US Treasury Department to provide greater certainty to ensure that the 49 million Americans served by public power do not pay more for the same energy outcomes as the nation transitions to a clean energy future.” – John Di Stasio, President, LPPC.