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Navigating the Phaseout Exception Procedures for Elective Payment Projects in 2024


Hello readers! Today, we’re breaking down a complex but important topic: the IRS's latest rules for energy project tax credits in 2024. We'll make it simple, so by the end of this post, you'll have a clear understanding of what these changes mean and how they might impact you.

What’s New in 2024?

The IRS recently announced some changes that affect how certain energy projects can get tax credits. These changes are especially important for projects that start in 2024.

Who Should Pay Attention?

If you're part of a tax-exempt organization, a government body, or a tribal government, or if you're involved with rural electric cooperatives, this information is particularly relevant to you.

Key Changes Explained

  1. Tax Credits for Energy Projects: The government offers tax credits for various types of energy projects. These credits are now subject to new rules.

  2. The Importance of Using U.S. Materials: To get the full tax credit, your project needs to use materials like steel and iron made in the U.S.

  3. Exceptions to the Rule: If using U.S. materials is too costly (over 25% more) or if you can’t find the quality or quantity needed in the U.S., there are exceptions.

What You Need to Do

  1. Provide an Attestation: You need to formally declare (with legal responsibility) that you’ve checked whether your project qualifies for these exceptions.

  2. Sign and Attach it to Your Tax Form: This declaration must be signed by someone authorized in your organization and attached to your tax form.

Your Input Matters

The IRS is also asking for feedback on these new rules. They want to know how these changes might affect your projects and what they can do to make the rules clearer or more practical.


Navigating tax rules can be daunting, but understanding these new changes is crucial for maximizing your project’s benefits. Remember, these rules are about encouraging the use of U.S. materials in energy projects, but there are exceptions if that's not practical for your project.

Need More Help?

Questions or concerns? Drop a comment below or reach out for more personalized advice. We're here to help you understand and make the most of these new regulations.


The content provided in this blog post is for informational purposes only and is not intended as legal advice. While we strive to ensure the accuracy and timeliness of the information presented, the rapidly changing nature of legal and regulatory environments means that we cannot guarantee its current applicability or completeness.

This blog post does not create an attorney-client relationship between you and Le Tax Law, PLLC. It should not be used as a substitute for competent legal advice from a licensed professional attorney in your jurisdiction.

Readers are advised to consult with a qualified attorney to understand how these legal developments may apply to their specific circumstances. If you are seeking legal advice or assistance, we encourage you to reach out to our experienced team.


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