Environmental, Social and Governance (ESG) Tax Library

The AICPA ESG Tax Task Force is currently monitoring and/or preparing comments in various areas. View current projects and submitted letters below.

Current activities

Notice 2023-38
Treasury and IRS intend to propose regulations addressing the application of rules taxpayers must follow to qualify for the domestic content bonus credit requirements under Secs. 45, 45Y, 48 and 48E, including related recordkeeping and certification requirements. The notice also describes a safe harbor regarding the classification of certain components in representative types of qualified facilities, energy projects or energy storage technologies.

Submitted comment letters

AICPA comments on Sections 6417, 48D and 6418 proposed rules
AICPA comments on proposed and temporary regulations on Section 6417 regarding Elective Payment of Applicable Energy Credits, Section 48D elective payment of applicable Credits and Section 6418 on Transfer of Certain Credits, Aug. 14, 2023.

AICPA comments on prevailing wage and apprenticeship requirements under Section 45(b)(6)(B)(ii) and other substantially similar provisions
The AICPA submitted comments to IRS regarding Notices 2022-51 and 2022-61 pertaining to prevailing wage and apprenticeship requirements of certain energy credits under the Inflation Reduction Act. Recommendations call for proposed regulations that provide detailed instructions for determining and interpreting wage information, provide safe harbors for taxpayers who rely on contractors to avoid penalty assessment and establish facts and circumstances for determining whether a taxpayer has met the good faith effort exception for apprenticeship requirements, Jan. 25, 2023.

AICPA comments on Notice 2022-50, Request for Comments on Elective Payment of Applicable Credits and Transfer of Certain Credits
The AICPA submitted comments regarding Notice 2022-50 pertaining to Sections 6417 and 6418 created by the Inflation Reduction Act (IRA). Recommendations call for guidance which promotes effective use of the Elective Payment of Applicable Credits and Transfer of Certain Credit provisions, Dec. 20, 2022.

Energy Tax Credits and ESG Client Letter
Inform your clients about environmental, social and governance (ESG) investing and energy tax credits for electric vehicles and residential energy efficiency.

Inflation Reduction Act Energy Credits Chart
Learn more about the energy credits related to home improvements and electric vehicles from the Inflation Reduction Act.

Summary of Inflation Reduction Act of 2022
Learn about the corporate alternative minimum tax, excise tax on corporate stock buybacks and renewable energy credits in the Inflation Reduction Act.

Why tax is crucial to ESG principles | Tax Section Odyssey
ESG — environmental, social and governance — is a key area for tax practitioners to understand as part of a taxpayer’s overall financial snapshot.

Inside look at the Inflation Reduction Act | Tax Section Odyssey — The Inflation Reduction Act, H.R. 5376, is now law and includes a 15% corporate minimum tax, various energy credits and increased IRS funding.

Alternative Fuels Data Center — Find federal and state laws and incentives for alternative fuels and vehicles, air quality, fuel efficiency and other transportation-related topics.

www.fueleconomy.gov — Official U.S. government source for fuel economy information, including tax incentives available for specific plug-in and fuel cell electric vehicles purchased in specific years

IRS Energy Credits Online (IRS ECO) — This free online tool is used for sellers of clean vehicles to register for time-of-sale reporting and dealer advance payments for the clean vehicle credit.

The clean-energy direct-pay election for not-for-profits and governmental entities, The Tax Adviser, Feb. 22, 2024

New IFAC study expands insights into sustainability disclosure and assurance beyond the G20, IFAC, Sept. 20, 2023

New advanced energy project tax credits under the Inflation Reduction Act, The Tax Adviser, Aug. 1, 2023

The state of play: Sustainability disclosure & assurance 2019-2021, trends & analysis, IFAC, Feb. 27, 2023

Integrating transfer pricing and ESG: Practical considerations, The Tax Adviser, Sept. 1, 2023

Sustainable aviation fuel incentives take off, The Tax Adviser, June 1, 2023

The CHIPS Act’s semiconductor production credit, The Tax Adviser, April 1, 2023

Marrying ESG initiatives to business tax planning, The Tax Adviser, Feb. 1, 2023

The Inflation Reduction Act’s energy- and climate-related tax provisions, The Tax Adviser, Jan. 1, 2023

ESG and taxation: A necessary part of a company’s strategic objectives, The Tax Adviser, Oct. 6, 2022

How firms are seizing the ESG opportunity, Journal of Accountancy, Oct. 1, 2022

• Credits and Deductions Under the Inflation Reduction Act (IRA) of 2022 — IRS webpage with guidance and resources on energy-related credits and deductions, including credits for individuals, and credits and deductions for businesses and other entities.

• Summary of IRA of 2022 Guidance — U.S. Department of Treasury summarizes the guidance issued related to the provisions enacted by the IRA of 2022.