The IRS has issued final regulations to provide guidance for the Advanced Manufacturing Production Credit created by the Inflation Reduction Act (IRA). The tax credit is for producing and selling statutorily specified eligible components to unrelated persons. Such eligible components include solar and wind energy components, inverters, qualifying battery components and 50 applicable critical minerals. The eligible components must be produced in the U.S. or one of its territories. The final regs define qualifying production activities and provide rules to address contract manufacturing scenarios. They also define eligible components, provide rules for calculating the credit and more.
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