Shariff Barakat and Susan Lent Quoted on Treasury Guidance for IRA Tax Credits
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Akin projects & energy transition partner Shariff Barakat and infrastructure & transportation practice head Susan Lent were quoted by Bloomberg Tax for its article “US Releases Made-in-America Rules for Clean Energy Credits.” The article reviewed guidance from the U.S. Department of the Treasury on eligibility for bonus tax credits in the Inflation Reduction Act for clean energy companies that meet requirements for sourcing materials in the United States.
Susan said that the guidance includes a definition of manufacturing identical to what the Federal Transit Administration uses, but noted that the definition is ambiguous. “Companies will have to ask suppliers how much products cost and whether the process was such that it was manufactured in the US. Deals will likely have certifications and indemnifications so companies could have more certainty and comfort.”
Said Shariff, “You really have to get some sensitive information. Companies will have to go to module manufacturers and inverter manufacturers and they effectively have to be open book. They have to show you their profit margins.”
