n-22-51.pdf

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Request for Comments on Prevailing Wage, Apprenticeship, Domestic Content, and
Energy Communities Requirements Under the Act Commonly Known as the Inflation
Reduction Act of 2022

Notice 2022-51

SECTION 1. PURPOSE
The Department of the Treasury (Treasury Department) and the Internal
Revenue Service (IRS) plan to issue guidance regarding the provisions of §§ 30C, 45,
45L, 45Q, 45U, 45V, 45Y, 45Z, 48, 48C, 48E, and 179D of the Internal Revenue Code
(Code), as amended or added by Public Law 117-169, 136 Stat. 1818 (August 16,
2022), commonly known as the Inflation Reduction Act of 2022 (IRA). This notice
requests comments on general as well as specific questions pertaining to the prevailing
wage, apprenticeship, domestic content, and energy community requirements for
increased or bonus credit (or deduction) amounts under those respective provisions of
the Code. Comments received in response to this notice will help to inform
development of guidance implementing the provisions of the IRA relating to §§ 30C, 45,
45L, 45Q, 45U, 45V, 45Y, 45Z, 48, 48C, 48E, and 179D.
SECTION 2. BACKGROUND
.01 Overview.
Taxpayers may qualify for increased credit amounts under §§ 30C, 45, 45Q, 45V,
45Y, 45Z, 48, 48C, and 48E, or an increased deduction amount under § 179D, if certain

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prevailing wage and apprenticeship requirements are satisfied.
1
In addition, taxpayers
may claim an increased credit amount under §§ 45L and 45U for satisfying prevailing
wage requirements.
2
Further, taxpayers may qualify for bonus credit amounts under
§§ 45, 48, 45Y, and 48E if certain domestic content requirements are satisfied.
3
Finally,
taxpayers may qualify for increased credit amounts under §§ 45, 48, 45Y, and 48E for
investment in energy communities.
4

.02 Prevailing Wage Requirement.
Sections 45(b)(7), 30C(g)(2), 45L(g), 45Q(h)(3), 45U(d)(2), 45V(e)(3), 45Y(g)(9),
45Z(f)(6), 48(a)(10), 48C(e)(5), and 48E(d)(3) include prevailing wage requirements that
taxpayers must satisfy to qualify for increased credit amounts under those sections of
the Code. Section 179D(b)(4) includes prevailing wage requirements that taxpayers
must satisfy to qualify for an increased deduction amount under that section. The
prevailing wage requirements under these various provisions are described below.

1
See § 13404(d) of the IRA for the prevailing wage and apprenticeship requirements under § 30C(g);
§ 13101(f) of the IRA for the prevailing wage and apprenticeship requirements under § 45(b)(7);
§ 13104(d) of the IRA for the prevailing wage and apprenticeship requirements under § 45Q(h)(3) and
(h)(4); § 13204(a)(1) of the IRA for the prevailing wage and apprenticeship requirements under
§ 45V(e)(3) and (e)(4); § 13701(a) of the IRA for the prevailing wage and apprenticeship requirements
under § 45Y(g)(10); § 13704(a) of the IRA for the prevailing wage and apprenticeship requirements under
§ 45Z(f)(7); § 13102(k) of the IRA for the prevailing wage and apprenticeship requirements under
§ 48(a)(10) and (a)(11); § 13501(a) of the IRA for the prevailing wage and apprenticeship requirements
under § 48C(e)(5) and (e)(6); § 13702(a) of the IRA for the prevailing wage and apprenticeship
requirements under § 48E(c)(3) and (c)(4); and § 13303(a)(1) of the IRA for the prevailing wage and
apprenticeship requirements under § 179D(b)(4) and (b)(5).
2
See § 13304(d) of the IRA for the prevailing wage requirement under § 45L(g) and § 13105(a) for the
prevailing wage requirements under § 45U(d)(2).
3
See § 13101(g) of the IRA for the domestic content requirements under § 45(b)(9), § 13102(l) of the IRA
for the domestic content requirements under § 48(a)(12), § 13701(a) of the IRA for the domestic content
requirements under § 45Y(g)(11), and § 13702(a) of the IRA for the domestic content requirements under
§ 48E(a)(3)(B).
4
See § 13101(g) of the IRA for the energy community provisions under § 45(b)(11), § 13102(o) of the IRA
for the energy community provisions under § 48(a)(14), § 13701(a) of the IRA for the energy community
provisions under § 45Y(g)(7), and § 13702(a) of the IRA for the energy community provisions under
§ 48E(a)(3)(A).

3
Section 45(b)(7)(A) provides, in general, that a taxpayer satisfies the prevailing
wage requirements with respect to a qualified facility if the taxpayer ensures that any
laborers and mechanics employed by the taxpayer or any contractor or subcontractor in
the construction of such facility, and with respect to any taxable year for any portion of
such taxable year that is within the period described in § 45(a)(2)(A)(ii), the alteration or
repair of such facility, are paid wages at rates not less than the prevailing rates for
construction, alteration, or repair of a similar character in the locality in which such
facility is located as most recently determined by the Secretary of Labor, in accordance
with subchapter IV of chapter 31 of title 40, United States Code. To determine an
increased credit amount for a taxable year, the requirement under § 45(b)(7)(A)(ii) is
applied to the taxable year in which the alteration or repair of the qualified facility
occurs.
Section 45(b)(7)(B)(i) generally provides a correction and penalty mechanism for
a taxpayer that claims the increased credit amount but fails to satisfy the prevailing
wage requirement under § 45(b)(7)(A). Section 45(b)(7)(B)(ii) provides that the
deficiency procedures under subchapter B of chapter 63 of the Code do not apply with
respect to the assessment or collection of any penalty imposed by § 45(b)(7). Section
45(b)(7)(B)(iii) increases the penalty if the Secretary of the Treasury or her delegate
(Secretary) determines that any failure to satisfy the prevailing wage requirement
under § 45(b)(7)(A) is due to intentional disregard of the requirements under
§ 45(b)(7)(A).
Section 48(a)(10) provides, in general, that a taxpayer satisfies the prevailing
wage requirements with respect to an energy project if the taxpayer ensures that any

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laborers and mechanics employed by the taxpayer or any contractor or subcontractor in
the construction of such energy project, and for the 5-year period beginning on the date
such project is originally placed in service the alteration or repair of such project, are
paid wages at rates not less than the prevailing rates for construction, alteration, or
repair of a similar character in the locality in which such project is located as most
recently determined by the Secretary of Labor, in accordance with subchapter IV of
chapter 31 of title 40 of the United States Code. Subject to § 48(a)(10)(C), for purposes
of any determination under § 48(a)(9)(A)(i) for the taxable year in which the energy
project is placed in service, the taxpayer will be deemed to satisfy the requirement
under § 48(a)(10)(A)(ii) at the time such project is placed in service. Section
48(a)(10)(B) provides that rules similar to the rules of § 45(b)(7)(B) (that is, the
correction and penalty mechanism for failure to satisfy the prevailing wage requirement)
apply. Section 48(a)(10)(C) provides that the Secretary is to, by regulations or other
guidance, provide for recapturing the benefit of any increase in the credit allowed under
§ 48(a) by reason of § 48(a)(10) with respect to any project that does not satisfy the
requirements under § 48(a)(10)(A) (after application of § 48(a)(10)(B)) for the period
described in § 48(a)(10)(A)(ii) (but which does not cease to be investment credit
property within the meaning of § 50(a)). The period and percentage of such recapture
are determined under rules similar to the rules of § 50(a).
The prevailing wage requirements under §§ 30C(g)(2), 45L(g),
5
45Q(h)(3),
6

5
Section 45L (New energy efficient home credit) includes a modified prevailing wage requirement under
§ 45L(g). Section 45L(g)(3) provides that the Secretary is to issue such regulations or other guidance
necessary to carry out the purposes of § 45L(g).
6
Section 45Q(h)(3)(A) applies with respect to any qualified facility and any carbon capture equipment.

5
45U(d)(2),45V(e)(3),45Y(g)(9), 45Z(f)(6)(A), 48C(e)(5), 48E(d)(3), and 179D(b)(4) are
similar to the requirements under § 45(b)(7) and § 48(a)(10).
.03 Apprenticeship Requirements.
Sections 45(b)(8), 30C(g)(3), 45Q(h)(4), 45V(e)(4), 45Y(g)(10), 45Z(f)(7),
48(a)(11), 48C(e)(6), and 48E(d)(4) include apprenticeship requirements that taxpayers
must satisfy to qualify for increased credit amounts under those sections of the Code.
Section 179D(b)(5) includes apprenticeship requirements that taxpayers must satisfy to
qualify for an increased deduction amount. The apprenticeship requirements under
these various provisions are described below.
Section 45(b)(8)(A)(i) provides that a taxpayer satisfies the apprenticeship
requirements with respect to the construction of any qualified facility if the taxpayer
ensures that not less than the applicable percentage of the total labor hours of the
construction, alteration, or repair work (including such work performed by any contractor
or subcontractor) with respect to such facility is, subject to § 45(b)(8)(B), performed by
qualified apprentices. Section 45(b)(8)(E)(ii) defines “qualified apprentice” as “an
individual who is employed by the taxpayer or by any contractor or subcontractor and
who is participating in a registered apprenticeship program, as defined in section
3131(e)(3)(B).” Section 3131(e)(3)(B) of the Code defines a “registered apprenticeship
program” as an “apprenticeship registered under the Act of August 16, 1937 (commonly
known as the “National Apprenticeship Act”; 50 Stat. 664, chapter 663; 29 U.S.C. 50 et
seq.) that meets the standards of subpart A of part 29 and part 30 of title 29, Code of
Federal Regulations.”
Under § 45(b)(8)(A)(ii), the applicable percentage of total labor hours to be

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performed by a qualified apprentice is (1) in the case of a qualified facility the
construction of which begins before January 1, 2023, 10 percent, (2) in the case of a
qualified facility the construction of which begins after December 31, 2022, and before
January 1, 2024, 12.5 percent, and (3) in the case of a qualified facility the construction
of which begins after December 31, 2023, 15 percent.
Section 45(b)(8)(B) provides that the requirement under § 45(b)(A)(i) is subject to
any applicable requirements for apprentice-to-journey worker ratios of the Department
of Labor or the applicable State apprenticeship agency.
Section 45(b)(8)(C) provides that each taxpayer, contractor, or subcontractor
who employs four or more individuals to perform construction, alteration, or repair work
with respect to the construction of a qualified facility must employ one or more qualified
apprentices to perform such work.
Section 45(b)(8)(D)(i) provides that a taxpayer will not be treated as failing to
satisfy the apprenticeship requirements if the taxpayer (1) satisfies the good faith effort
requirements described in § 45(b)(8)(D)(ii), or (2) subject to § 45(b)(8)(D)(iii), in the case
of any failure by the taxpayer to satisfy the requirements under § 45(b)(8)(A) and (C)
with respect to the construction, alteration, or repair work on any qualified facility to
which § 45(b)(8)(D)(i)(I) does not apply, makes payment to the Secretary of a penalty in
an amount equal to the product of $50, multiplied by the total labor hours for which the
requirement was not satisfied with respect to the construction, alteration, or repair work
on such qualified facility.
Section 45(b)(8)(D)(ii) provides that a taxpayer will be deemed to have satisfied
the requirements under § 45(b)(8)(A) with respect to a qualified facility if such taxpayer

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has requested qualified apprentices from a registered apprenticeship program and (1)
such request has been denied, provided that such denial is not the result of a refusal by
the taxpayer or any contractors or subcontractors engaged in the performance of
construction, alteration, or repair work with respect to such qualified facility to comply
with the established standards and requirements of the registered apprenticeship
program, or (2) the registered apprenticeship program fails to respond to such request
within 5 business days after the date on which such registered apprenticeship program
received such request.
Section 45(b)(8)(D)(iii) provides that if the Secretary determines that any failure
described in § 45(b)(8)(D)(i)(II) is due to intentional disregard of the apprenticeship
requirements, § 45(b)(8)(D)(i)(II) must be applied by substituting $500 for $50 for
purposes of computing the penalty.
Section 45(b)(8)(E)(i) defines the term “labor hours.”
Sections 30C(g)(3), 45Q(h)(4), 45V(e)(4), 45Y(g)(10), 45Z(f)(7), 48(a)(11),
48C(e)(6) (effective for taxable years beginning after January 1, 2023), 48E(d)(4), and
179D(b)(5) apply rules similar to those under § 45(b)(8).
.04 Domestic Content Requirement.
Sections 45(b)(9), 48(a)(12), 45Y(g)(11) and 48E(a)(3)(B) provide domestic
content requirements that taxpayers must satisfy to qualify for bonus credit amounts
under those sections of the Code. Sections 45(b)(9)(A) and 45Y(g)(11)(A) provide for a
10 percent domestic content bonus credit amount if the domestic content requirements
are satisfied. Under §§ 48(a)(12)(C) and 48E(a)(3)(B), the domestic content bonus
credit amount is reduced from 10 percent to 2 percent if certain other requirements are

8
not satisfied.
Section 45(b)(9)(B)(i) provides that with respect to any qualified facility, the
domestic content requirement is satisfied if the taxpayer certifies to the Secretary (at
such time, and in such form and manner, as the Secretary may prescribe) that any
steel, iron, or manufactured product that is a component of such facility (upon
completion of construction) was produced in the United States (as determined under
49 C.F.R. § 661).
Section 45(b)(9)(B)(ii) provides that in the case of steel or iron, § 45(b)(9)(B)(i) is
applied in a manner consistent with 49 C.F.R. § 661.5. For purposes of § 45(b)(9)(B)(i),
§ 45(b)(9)(B)(iii) provides that the manufactured products that are components of a
qualified facility upon completion of construction are deemed to have been produced in
the United States if not less than the adjusted percentage (as determined under
§ 45(b)(9)(C)) of the total costs of all such manufactured products of such facility are
attributable to manufactured products (including components) that are mined, produced,
or manufactured in the United States.
Section 45(b)(9)(C)(i) provides that the adjusted percentage is 40 percent.
Section 45(b)(9)(C)(ii) provides an exception for a qualified facility that is an offshore
wind facility, for which the adjusted percentage is 20 percent.
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Section 45(b)(10) provides for the phaseout of elective payments. Section
45(b)(10)(A) provides that in the case of a taxpayer making an election under § 6417
with respect to a credit under § 45, the amount of such credit will be replaced with the

7
For purposes of §§ 45, 48, and 48E, the adjusted percentage is 40 percent (20 percent in the case of
offshore wind facilities). For purposes of § 45Y, § 45Y(g)(11)(C) provides the adjusted percentages,
ranging from 40 precent (20 percent in the case of offshore wind facilities) to 55 percent depending on
when construction of a facility begins.

9
value of such credit (determined without regard to § 45(b)(10)), multiplied by the
applicable percentage. Section 45(b)(10)(B) provides that in the case of any qualified
facility (1) that satisfies the requirements under § 45(b)(9)(B), or (2) with a maximum net
output of less than 1 megawatt (as measured in alternating current), the applicable
percentage is 100 percent. Section 45(b)(10)(C) provides for a phased domestic
content requirement, and states that subject to the exceptions in § 45(b)(10)(D), for any
qualified facility that is not described in § 45(b)(10)(B), the applicable percentage is
(1) 100 percent if construction of such facility begins before January 1, 2024, and
(2) 90 percent if construction of such facility begins in calendar year 2024.
8

Section 45(b)(10)(D)(i) provides that the Secretary is to provide exceptions to the
requirements under § 45(b)(10)(D) if (1) the inclusion of steel, iron, or manufactured
products that are produced in the United States increases the overall costs of
construction of qualified facilities by more than 25 percent, or (2) relevant steel, iron, or
manufactured products are not produced in the United States in sufficient and
reasonably available quantities or of a satisfactory quality. Section 45(b)(10)(D)(ii)
provides that in any case in which the Secretary provides an exception pursuant to
§ 45(b)(10)(D)(i), the applicable percentage is 100 percent.
Sections 48(a)(12), 45Y(g)(11), and 48E(a)(3)(B) apply similar rules to those
under § 45(b)(9). Sections 48(a)(13), 45Y(g)(12), and 48E(d)(5) apply similar elective
payments rules to those under § 45(b)(10).

8
For purposes of §§45Y(g)(12) and 48E(d)(5), the applicable percentages are the same as for §§ 45 and
48 for facilities that begin construction in 2024 or earlier, but the applicable percentages decrease from 85
percent for facilities that begin construction in 2025 to 0 percent for facilities that begin construction after
2025.

10
.05 Energy Community Requirement. Sections 45(b)(11), 48(a)(14), 45Y(g)(7),
and 48E(a)(3)(A) provide energy community requirements that taxpayers must satisfy to
qualify for increased credit amounts under those provisions of the Code. Section
45(b)(11)(A) provides that in the case of a qualified facility located in an energy
community, the credit determined under § 45(a) (determined after the application of
§ 45(b)(1) through (10), without the application of § 45(b)(9)) is increased by an amount
equal to 10 percent of the amount so determined. Section 45Y(g)(7) provides a similar
rule. Under §§ 48(a)(14) and 48E(a)(3)(A), the increase in the credit amount for
satisfying the energy community requirements is reduced from 10 percent to 2 percent if
certain other requirements are not satisfied.
Section 45(b)(11)(B) provides that for purposes of § 45(b)(11), the term energy
community means: (1) A brownfield site (as defined in 42 U.S.C. 9601(39)(A), (B), and
(D)(ii)(III)), (2) A metropolitan statistical area or non-metropolitan statistical area that has
(or had, at any time after December 31, 2009) 0.17 percent or greater direct
employment or 25 percent or greater local tax revenues related to the extraction,
processing, transport, or storage of coal, oil, or natural gas (as determined by the
Secretary), and has an unemployment rate at or above the national average
unemployment rate for the previous year (as determined by the Secretary), or (3) A
census tract (i) in which a coal mine has closed after December 31, 1999; or (ii) in which
a coal-fired electric generating unit has been retired after December 31, 2009; or (iii)
that is directly adjoining to any census tract described in § 45(b)(11)(B)(iii)(I).
The definition of an energy community in § 45(b)(11)(B) is adopted by
§§ 45Y(g)(7), 48(a)(14) (subject to certain modifications), and 48E(a)(3)(A).

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SECTION 3. REQUEST FOR COMMENTS
The Treasury Department and the IRS request comments on questions arising
from the amendments in the IRA regarding prevailing wage, apprenticeship, domestic
content, and energy community requirements that should be addressed in guidance.
Commenters are encouraged to specify the issues on which guidance is needed most
quickly as well as the most important issues on which guidance is needed. In addition
to general comments, the Treasury Department and the IRS request comments that
address the following specific questions:
.01 Prevailing Wage Requirement
(1) Section 45(b)(7)(A) provides that a taxpayer must ensure that any laborers
and mechanics employed by the taxpayer, or any contractor or subcontractor, are paid
wages at rates not less than the prevailing wage rates for construction, alteration, or
repair of a similar character in the locality in which such facility is located as most
recently determined by the Secretary of Labor in accordance with subchapter IV of
chapter 31 of title 40, which is commonly known as the Davis-Bacon Act. Is guidance
necessary to clarify how the Davis-Bacon prevailing wage requirements apply for
purposes of § 45(b)(7)(A)?
(2) Section 45(b)(7)(B)(i) generally provides a correction and penalty mechanism
for failure to satisfy prevailing wage requirements. What should the Treasury
Department and the IRS consider in developing rules for taxpayers to correct a
deficiency for failure to satisfy prevailing wage requirements?
(3) What documentation or substantiation should be required to show compliance
with the prevailing wage requirements?

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(4) Is guidance for purposes of § 45(b)(7)(A) needed to clarify the treatment of a
qualified facility that has been placed in service but does not undergo alteration or repair
during a year in which the prevailing wage requirements apply?
(5) Please provide comments on any other topics relating to the prevailing wage
requirements for purposes of § 45(b)(7)(A) that may require guidance.
.02 Apprenticeship Requirement
(1) Section 45(b)(8)(C) provides that each taxpayer, contractor, or subcontractor
who employs four or more individuals to perform construction, alteration, or repair work
with respect to a qualified facility must employ one or more qualified apprentices from a
registered apprenticeship program to perform that work. What factors should the
Treasury Department and the IRS consider regarding the appropriate duration of
employment of individuals for construction, alteration, or repair work for purposes of this
requirement?
(2) Section 45(b)(8)(D)(ii) provides for a good faith effort exception to the
apprenticeship requirement.
(a) What, if any, clarification is needed regarding the good faith effort exception?
(b) What factors should be considered in administering and promoting
compliance with this good faith effort exception?
(c) Are there existing methods to facilitate reporting requirements, for example,
through current Davis-Bacon reporting forms, current performance reporting
requirements for contracts or grants, and/or through DOL’s Registered Apprenticeship
Partners Information Management Data System (RAPIDS) database or a State
Apprenticeship Agency’s database?

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(3) What documentation or substantiation do taxpayers maintain or could they
create to demonstrate compliance with the apprenticeship requirements in
§ 45(b)(8)(A), (B), and (C), or the good faith effort exception?
(4) Please provide comments on any other topics relating to the apprenticeship
requirements in § 45(b)(8)(B) that may require guidance.
.03 Domestic Content Requirement
(1) Sections 45(b)(9)(B) and 45Y(g)(11)(B) provide that a taxpayer must certify
that any steel, iron, or manufactured product that is a component of a qualified facility
(upon completion of construction) was produced in the United States (as determined
under 49 C.F.R. 661).
(a) What regulations, if any, under 49 C.F.R. 661 (such as 49 C.F.R. 661.5 or
661.6) should apply in determining whether the requirements of section §§ 45(b)(9)(B)
and 45Y(g)(11)(B) are satisfied? Why?
(b) What should the Treasury Department and the IRS consider when
determining “completion of construction” for purposes of the domestic content
requirement? Should the “completion of construction date” be the same as the placed
in service date? If not, why?
(c) Should the definitions of “steel” and “iron” under 49 C.F.R. 661.3, 661.5(b)
and (c) be used for purposes of defining those terms under §§ 45(b)(9)(B) and
45Y(g)(11)(B)? If not, what alternative definitions should be used?
(d) What records or documentation do taxpayers maintain or could they create to
substantiate a taxpayer’s certification that they have satisfied the domestic content
requirements?

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(2) Sections 45(b)(9)(B)(iii) and 45Y(g)(11)(B)(iii) provide that manufactured
products that are components of a qualified facility upon completion of construction will
be deemed to have been produced in the United States if not less than the adjusted
percentage of the total costs of all of such manufactured products of such facility are
attributable to manufactured products (including components) that are mined, produced,
or manufactured in the United States.
(a) Does the term “component of a qualified facility” need further clarification? If
so, what should be clarified and is any clarification needed for specific types of property,
such as qualified interconnection property?
(b) Does the determination of “total costs” with regard to all manufactured
products of a qualified facility that are attributable to manufactured products (including
components) that are mined, produced, or manufactured in the United States need
further clarification? If so, what should be clarified? Is guidance needed to clarify the
term “mined, produced, or manufactured”?
(c) Does the term “manufactured product” with regard to the various technologies
eligible for the domestic content bonus credit need further clarification? If so, what
should be clarified? Is guidance needed to clarify what constitutes an “end product” (as
defined in 49 C.F.R. 661.3) for purposes of satisfying the domestic content
requirements?
(d) Does the adjusted percentage threshold rule that applies to manufactured
products need further clarification? If so, what should be clarified?
(e) Does the treatment of subcomponents with regard to manufactured products
need further clarification? If so, what should be clarified?

15
(3) Solely for purposes of determining whether a reduction in an elective payment
amount is required under § 6417, §§ 45(b)(10)(D) and 45Y(g)(12)(D) provide an
exception for the requirements contained in §§ 45(b)(9)(B) and 45Y(g)(10)(B)
(respectively) if the inclusion of steel, iron, or manufactured productions that are
produced in the United States increases the overall costs of construction of qualified
facilities by more than 25 percent or relevant steel, iron, or manufactured products are
not produced in the United States in sufficient and reasonably available quantities or of
a satisfactory quality.
(a) Does the determination of “overall costs” and increases in the overall costs
with regard to construction of a qualified facility need further clarification? If so, what
should be clarified?
(b) What factors should the Secretary include in guidance to clarify when an
exception to the requirements under section §§ 45(b)(10)(D) and 45Y(g)(12)(D)
applies? What existing regulatory or guidance frameworks, such as the Federal
Acquisition Regulation (FAR) and Build America Buy America (BABA) guidance, may be
useful for developing guidance to grant exceptions under §§ 45(b)(10)(D) and
45Y(g)(12)(D)?
(c) Do the “sufficient and reasonably available quantities” and “satisfactory
quality” standards need further clarification? If so, what should be clarified?
(4) Sections 48 and 48E have domestic content bonus amount rules similar to
other provisions of the Code. Section 48(a)(12) has domestic content requirement rules
similar to § 45(b)(9)(B) and § 48E(a)(3)(B) has domestic content rules similar to the
rules of § 48(a)(12). What should the Treasury Department and the IRS consider in

16
providing guidance regarding the similar domestic content requirements under
§ 48(a)(12) and § 48E(a)(3)(B)?
(5) Please provide comments on any other topics relating to the domestic content
requirements that may require guidance.
.04 Energy Community Requirement
(1) Section 45(b)(11)(A) provides an increased credit amount for a qualified
facility located in an energy community. What further clarifications are needed
regarding the term “located in” for this purpose, including any relevant timing
considerations for determining whether a qualified facility is located in an energy
community? Should a rule similar to the rule in § 1397C(f) (Enterprise Zones rule
regarding the treatment of businesses straddling census tract lines), the rules in 26
C.F.R. §§ 1.1400Z2(d)-1 and 1.1400Z2(d)-2, or other frameworks apply in making this
determination?
(2) Does the determination of a brownfield site (as defined in subparagraphs (A),
(B), and (D)(ii)(III) of § 101(39) of the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980 (42 U.S.C. 9601(39))) need further
clarification? If so, what should be clarified?
(3) Which source or sources of information should the Treasury Department and
the IRS consider in determining a “metropolitan statistical area” (MSA) and “non-
metropolitan statistical area” (non-MSA) under § 45(b)(11)(B)(ii)? Which source or
sources of information should be used in determining whether an MSA or non-MSA
meets the threshold of 0.17 percent or greater direct employment related to the
extraction, processing, transport, or storage of coal, oil, or natural gas, and an

17
unemployment rate at or above the national average unemployment rate for the
previous year? What industries or occupations should be considered under the
definition of “direct employment” for purposes of this section?
(4) Which source or sources of information should the Treasury Department and
the IRS consider in determining census tracts that had a coal mine closed after
December 31, 1999, or had a coal-fired electric generating unit retired after December
31, 2009, under § 45(b)(11)(B)(iii)? How should the closure of a coal mine or the
retirement of a coal-fired electric generating unit be defined under § 45(b)(11)(B)(iii)?
(5) For each of the three categories of energy communities allowed under
§ 45(b)(11)(B), what past or possible future changes in the definition, scope, boundary,
or status of a “brownfield site” under § 45(b)(11)(B)(i), a “metropolitan statistical area or
non-metropolitan statistical area” under § 45(b)(11)(B)(ii), or a “census tract” under
§ 45(b)(11)(B)(iii) should be considered, and why?
(6) Under § 45(b)(11)(B)(ii)(I), what should the Treasury Department and the IRS
consider in determining whether a metropolitan statistical area or non-metropolitan
statistical area has or had 25 percent or greater local tax revenues related to the
extraction, processing, transport, or storage of coal, oil, or natural gas? What sources
of information should be used in making this determination? What tax revenues (for
example, municipal, county, special district) should be considered under this section?
What, if any, consideration should be given to the unavailability of consistent public data
for some of these types of taxes?
(7) Please provide comments on any other topics relating to the energy
community requirement that may require guidance.

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.05 Increased Credit Amount for Qualified Facility With Maximum Net Output of
Less than 1 Megawatt
Section 45(b)(6)(A) provides for an increased credit amount in the case of any
qualified facility that satisfies the requirements of § 45(b)(6)(B). One way that a
qualified facility can satisfy the requirements of § 45(b)(6)(B) is if it is a facility with a
maximum net output of less than 1 megawatt (as measured in alternating current).
Similarly, § 48(a)(9)(A) provides for an increased credit amount in the case of any
energy project that satisfies the requirements of § 48(a)(9)(B), and one way that an
energy project can satisfy the requirements of § 48(a)(9)(B) is if it is a project with a
maximum net output of less than 1 megawatt of electrical (as measured in alternating
current) or thermal energy. Sections 45Y(a)(2)(B) and 48E(a)(2)(A) also provide similar
rules. Does the determination of when a facility or project will be considered to have a
maximum net output of less than 1 megawatt need further clarification? If so, what
should be clarified?
SECTION 4. SUBMISSION OF COMMENTS
.01 Written comments should be submitted by Friday, November 4, 2022.
Consideration will be given, however, to any written comment submitted after Friday,
November 4, 2022, if such consideration will not delay the issuance of guidance. The
subject line for the comments should include a reference to Notice 2022-51. Comments
may be submitted in one of two ways:
(1) Electronically via the Federal eRulemaking Portal at www.regulations.gov
(type IRS-2022-51 in the search field on the regulations.gov homepage to find this
notice and submit comments).
(2) Alternatively, by mail to: Internal Revenue Service, CC:PA:LPD:PR (Notice

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2022-51), Room 5203, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044.
.02 All commenters are strongly encouraged to submit comments electronically.
The Treasury Department and the IRS will publish for public availability any comment
submitted electronically, or on paper, to its public docket on regulations.gov.
SECTION 5. 60-DAY RULE NOT EFFECTUATED FOR THE PREVAILING WAGE
AND APPRENTICESHIP REQUIREMENTS

For purposes of §§ 30C, 45, 45L, 45Q, 45U, 45V, 45Y, 48, 48C, 48E, and 179D,
the publication of this notice requesting comments is not the publication of guidance
with respect to the prevailing wage and apprenticeship requirements, and it is not
relevant in determining whether the prevailing wage and apprenticeship requirements
are satisfied under such sections. The Treasury Department and the IRS will explicitly
identify when it has published guidance with respect to the prevailing wage and
apprenticeship requirements that is relevant for determining whether such requirements
have been satisfied for purposes of §§ 30C, 45, 45L, 45Q, 45U, 45V, 45Y, 48, 48C,
48E, and 179D.
SECTION 6. DRAFTING INFORMATION

The principal author of this notice is the Office of Associate Chief Counsel
(Passthroughs & Special Industries). However, other personnel from the Treasury
Department and the IRS participated in its development. For further information
regarding this notice, call the energy security guidance contact number at (202) 317-
5254 (not a toll-free call).