The AICPA has provided recommendations to the IRS and Treasury on interim guidance regarding the domestic content bonus credit (DCBC).
The interim guidance in Notice 2023-38 describes certain rules that the IRS and Treasury intend to include in proposed regulations regarding DCBC requirements and related recordkeeping and certification requirements.
The AICPA's recommendations include two approaches to better calculate the adjusted percentage rule, a safe harbor for classifications of certain applicable project components, clarification on retrofitted projects and certification requirements.
The AICPA suggests allowing taxpayers to provide support for the domestic direct costs incurred to produce a manufactured product in the U.S. and including those amounts in the numerator regardless of whether there is a non-domestic manufactured product component. Read more.