1. Review the Project As It Exists Now
Credit eligibility can shift as construction, procurement, and financing move forward. Start with actual dates, property, labor records, and the intended credit.
Start with Dates and the Claimed Credit
Beginning-of-construction and placed-in-service dates can determine which rules apply. The 2025 OBBBA changed or accelerated limits for several energy incentives.
- Confirm the Code section supporting each expected credit.
- Document construction and placed-in-service dates.
- Check later statutory changes before relying on an earlier analysis.
Reconstruct Support from Existing Records
A missing file does not justify creating a record of events that did not occur. Build support from contemporaneous evidence.
- Preserve payroll, contracts, invoices, and contractor records.
- Match certifications and procurement files to project milestones.
- Identify unresolved gaps instead of filling them with unsupported explanations.
Broader incentive requirements are addressed under Inflation Reduction Act.
2. Test Labor and Sourcing before Claiming a Bonus
Prevailing-wage and apprenticeship rules can affect increased credit amounts. Domestic content requires a separate sourcing and certification analysis.
Audit Wage and Apprenticeship Records
Where PWA rules apply, records should support classifications, wage rates, hours, and apprenticeship compliance. Federal rules allow correction of certain failures.
- Match workers to applicable classifications and wage determinations.
- Review contractor and subcontractor payroll support.
- Evaluate available correction rules when a deficiency appears.
Trace Domestic Content through Procurement
For §48E projects beginning construction in 2026, the general manufactured-products adjusted percentage is 50%. Project-specific sourcing records still matter.
- Separate steel or iron from manufactured-product analysis.
- Trace qualifying costs through available supplier records.
- Retain support for the required certification.
Related planning can be reviewed through Energy Tax.
3. Recheck Storage, Charging, and Manufacturing Projects
Different technologies follow different Code provisions. A clean energy tax credit compliance attorney should identify the applicable credit before using one project-wide checklist.
Separate §48e Storage from §30c Charging Property
Energy storage can qualify under §48E when requirements are met. Section 30C follows different location and labor rules and ends for property placed in service after June 30, 2026.
| Project | Provision | Key Review |
|---|---|---|
| Energy storage | §48E | Property, timing, PFE rules |
| EV charging | §30C | Eligible tract, service date, PWA |
| Manufacturing | §45X / §48C | Component or project eligibility |
Separate §45x from §48c Manufacturing Claims
Section 45X covers specified components; §48C applies to allocated advanced-energy projects. Rules restrict combining both benefits for the same facility.
- Identify the component or property supporting the benefit.
- Check facility-level restrictions before combining incentives.
- Review current PFE restrictions affecting §45X claims.
Facility issues can also be reviewed through Manufacturing Compliance.
4. Keep Hydrogen and Carbon Capture Credits Separate
Hydrogen and carbon capture use different credits. Section 45V governs qualified clean hydrogen; §45Q addresses qualified carbon oxide.
Build the §45v File Around Hydrogen Production
The §45V amount depends in part on emissions intensity and applicable PWA rules. Records should support production qualification and labor compliance.
- Maintain required emissions and verification support.
- Keep applicable construction and labor records.
- Check restrictions on coordinating §45V with other credits.
Build the §45q File Around Storage and Reporting
Section 45Q requires support for the carbon-oxide pathway. Notice 2026-50 expands an interim safe harbor for specified storage reporting, certification, and recapture rules.
- Maintain measurement and storage documentation.
- Track applicable reporting and independent certification.
- Document leakage information relevant to recapture.
5. Retest Credit Assumptions before the Next Project Decision
Tax assumptions can affect financing before filing. Schedule, supplier, ownership, or design changes may require another eligibility review.
Check Current Transition Rules
Applicable wind and solar facilities under §§45Y and 48E face termination rules. Notice 2025-42 addresses when construction begins.
- Confirm the actual beginning-of-construction date.
- Apply current transition rules rather than an outdated safe harbor.
- Check the December 31, 2027 placed-in-service limitation where applicable.
Review Prohibited Foreign Entity Restrictions
PFE restrictions affect §§45X, 45Y, and 48E. Notice 2026-15 provides interim guidance on material assistance and substantiation.
- Map relevant suppliers and ownership relationships.
- Test material assistance under current guidance.
- Preserve sourcing records supporting the analysis.
Changes affecting financing can also be reviewed through Energy Project Finance.
6. Frequently Asked Questions
Can an EV charging project placed in service after June 30, 2026 claim §30C?
No. Under current federal law, §30C does not apply to property placed in service after June 30, 2026.
Does starting construction preserve every IRA credit under earlier rules?
No. Transition rules differ by credit. The applicable Code section, construction date, placed-in-service date, and current statutory rules should be reviewed together.
Can missing prevailing-wage records be created later?
Compliance should rest on accurate evidence of what occurred. Existing payroll, contractor, and apprenticeship records may help reconstruct the file, but unsupported records should not fill factual gaps.
Do energy storage projects follow the same rules as solar projects?
No. Section 48E can cover energy storage technology, but certain termination provisions specifically address applicable wind and solar facilities. Storage projects also require review of current eligibility restrictions.
7. Review the Credit before the Project Moves Again
A US Inflation Reduction Act IRA regulatory advisory attorney can review the federal credit, existing records, project structure, and unresolved issues before the next decision. SJKP's attorneys can help management assess what needs attention before the project proceeds.
20 Aug, 2026
