Summer 2023 Solar Industry Update
Domestic Content Bonus Guidance
Treasury and the IRS have issued initial guidance on the 10% domestic content bonus credit available for the ITC or PTC
which will apply until 90 days after the date of publication of forthcoming proposed regulations.
The guidance clarified relevant definitions and provided a non-exhaustive list of utility-scale solar PV products:
Applicable Project
Manufactured Products
A set percentage of the total direct costs of all
manufactured products must be U.S.-made.
Steel and Iron Products
All structural steel or iron products
must be U.S.-made
Module
Components*
Cells, Frame, Glass,
Encapsulant, Junction
Box, Backsheet, Edge
Seals, Pottants, Bus
Ribbons, Adhesives,
Bypass Diodes
Tracker
*sourcing of subcomponents (e.g., wafers) is not constrained
Inverter
Racking
Pile/ground screw
Rebar
Domestic Cost
Percentage
U.S. Manufactured Products Costs +
Eligible U.S. Components Costs
=
40%
2023-2024 2025 2026
45% 50%
2027+
55%
Total Manufactured Products Costs
Taxpayers must attach a domestic content certification statement attesting they have met both requirements.
+ Direct costs include only direct labor and material. The direct labor of products manufactured in
the U.S. is only considered domestic if all of the components of the product are of U.S. origin.View entire presentation