Final Rules for Section 48 ITC Create Clarity for Hydropower
Washington, DC (December 4, 2024) – The U.S. Department of the Treasury and the Internal Revenue Service released final rules for the Section 48 Energy Credit, known as the Investment Tax Credit, which provides clean energy project developers with both certainty and clarity to undertake major investments to produce clean power.
While the National Hydropower Association (NHA) is still in the process of reviewing the final rules, the Section 48 Energy Credit furnishes hydropower owners and developers with certainty regarding property at facilities considered “energy property,” ultimately helping lower unit refurbishment costs that will incentivize reinvestment into the existing fleet, lower costs for new facilities, and save consumers money.
“As NHA undergoes greater review of the final rule’s details, the long-needed clarity regarding the scope of hydropower property has been provided, and it appears to incorporate hydro’s unique fact patterns,” said Michael Purdie, Director of Regulatory Affairs and Markets, National Hydropower Association.
NHA appreciates the Biden Administration’s consideration of NHA’s input and looks forward to reviewing additional rules as they’re released.
Media Contact: Copeland Tucker, 771-216-4699, copeland@hydro.org
