Navigating the Domestic Content Bonus Credit Guidance

Tax attorneys Amish Shah, Nicole Elliott and Mary Kate Nicholson co-authored an article for Tax Notes Federal explaining the IRS' guidance on the domestic content bonus available under the production tax credit (PTC) and investment tax credit (ITC). The PTC and ITC provide a 10 percent domestic content bonus credit amount if the steel, iron or manufactured products of a qualified facility or energy property are produced in the United States. The authors note that while the guidance offers helpful guidelines and safe harbors, questions about applying the rules remain. In this article, they break down how to determine whether a product qualifies for the credit, including the requirements for steel, iron and manufactured products. They also offer pointers for recordkeeping.

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