Navigating the Domestic Content Requirements Under Evolving IRS Guidance

Tax attorneys Nicole Elliott, Mary Kate Nicholson, Amish Shah, Elizabeth Crouse, Roger Aksamit, Ryan Phelps and Bryan Marcelino co-authored an article featured in Pratt's Energy Law Report analyzing the evolving IRS guidance on domestic content requirements for investment and production tax credits under Sections 45, 45Y, 48 and 48E of the Internal Revenue Code. The article focuses on IRS Notice 2025-08, the latest update which introduces the First Updated Elective Safe Harbor, refining prior guidance to help taxpayers accurately calculate domestic content percentages for solar, land-based wind and battery electric storage system projects. The authors break down key changes including updated safe harbor tables, modified assigned cost percentages and the specific rules taxpayers must follow when applying these updated methodologies.

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