The US Treasury Department and Internal Revenue Service (IRS) announced on Dec. 14 proposed regulations for aluminum production under the Inflation Reduction Act (IRA).
According to irs.gov, Section 45X of the Internal Revenue Code (IRC) “provides a credit for the production (within the US) and sale of certain eligible components including solar and wind energy components, inverters, qualifying battery components, and applicable critical minerals.”
Additionally, the proposed regulations provide definitions for eligible components, including aluminum.
The proposed regulations provide guidance concerning:
- How aluminum is defined
- Calculating costs incurred for the purpose of determining the credit amount
- Completion of proper documentation
In July 2023, 16 members of the SAFE (Securing America’s Future Energy) Security Leadership Council sent a letter to US Treasury Secretary Janet Yellen, recommending clarification of the definition of aluminum in the IRA.
SAFE is a nonpartisan organization located in Washington. The group is dedicated to developing and advocating for transportation and energy policy solutions, according to its website.
The director of SAFE’s Center for Strategic Industrial Materials, Joe Quinn, commented in support of the announcement.
“We applaud Treasury for clarifying the definition of aluminum production as stated in the Inflation Reduction Act. Today’s proposed guidance will help US primary aluminum producers bolster US operations and strengthen global competitiveness,” Quinn said in a statement.
“SAFE believes aluminum is vital to the clean energy transition, a key component for electric vehicles, solar panels, transmission lines, and countless other tools of the clean energy future,” he added.
Recall the IRA was passed Aug, 16, 2022.
Becca MoczygembaRead more from Becca Moczygemba
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