The Honorable Lily Batchelder 

Assistant Secretary for Tax Policy

Department of the Treasury

1500 Pennsylvania Avenue, NW 

Washington, DC 20220 

Dear Assistant Secretary Batchelder: 

Thank you for your letter. I am replying on behalf of Administrator Fernandez. The Treasury 

Department (UST) has requested that the Federal Transit Administration (FTA) evaluate certain 

components of specified renewable energy projects to facilitate UST’s implementation of the 

domestic content tax credit provisions of the Inflation Reduction Act (“IRA”). As UST has 

explained, those provisions require taxpayers to certify that any steel, iron, or manufactured 

product that is a component of the relevant facility or property was produced in the United 

States, “as determined under section 661 of title 49, Code of Federal Regulations.” See 26 

U.S.C. § 45(b)(9)(B)(i). In addition, in the case of steel or iron, this requirement must be applied 

in a manner “consistent with section 661.5 of title 49.” 26 U.S.C. § 45(b)(9)(B)(ii). FTA 

administers part 661 of title 49, Code of Federal Regulations, which implements its Buy America 

statute (49 U.S.C. § 5323(j)). 

FTA has analyzed the components of renewable energy projects identified by UST to determine 

whether the iron and steel domestic content requirement or the manufactured product domestic 

content requirement would apply under the FTA Buy America regulations. FTA used the same 

approach it has applied in prior FTA decisions. In conducting this analysis, which involves 

energy technologies that FTA would not ordinarily analyze under its regulations with respect to 

public transportation projects, FTA has relied on the expert technical assistance of the 

Department of Energy (DOE), particularly with respect to the function of components and the 

manufacturing processes involved in producing them. 

Based on the facts provided by DOE, FTA would categorize the components of renewable 

energy projects specified by UST in the following table:

1200 New Jersey Avenue, SE

Washington, DC 20590 

Chief Counsel
Batchelder

Page 2 

Project Component Categorization

Utility-scale 

photovoltaic system 

Steel photovoltaic module racking Steel/Iron

Pile or ground screw Steel/Iron

Steel or iron rebar in foundation (e.g., 

concrete pad)

Steel/Iron

Photovoltaic tracker Manufactured Product

Photovoltaic module (which includes the 

following components, if applicable: 

photovoltaic cells, mounting frame or 

backrail, glass, encapsulant, backsheet, 

junction box (including pigtails and 

connectors), edge seals, pottants, 

adhesives, bus ribbons, and bypass diodes)

Manufactured Product

Inverter Manufactured Product

Land-based wind 

facility

Tower Steel/Iron

Steel or iron rebar in foundation (e.g., 

spread footing)

Steel/Iron

Wind turbine (which includes the 

following components, if applicable: the 

nacelle, blades, rotor hub, and power 

converter)

Manufactured Product

Wind tower flanges Manufactured Product

Offshore wind facility Tower Steel/Iron

Jacket foundation Steel/Iron

Wind tower flanges Manufactured Product

Wind turbine (which includes the 

following components, if applicable: the 

nacelle, blades, rotor hub, and power 

converter)

Manufactured Product

Transition piece Manufactured Product

Monopile Manufactured Product

Inter-array cable Manufactured Product

Offshore substation Manufactured Product

Export cable Manufactured Product

Battery energy storage 

technology 

Steel or iron rebar in foundation (e.g.,

concrete pad)

Steel/Iron

Battery pack (which includes the following 

components, if applicable: cells, 

packaging, thermal management system, 

and battery management system)

Manufactured Product

Battery container/housing Manufactured Product

Inverter Manufactured Product
Batchelder

Page 3 

The technologies at issue are different from those typically used in public transportation, and the 

IRA includes specific rules on domestic content (such as a minimum required percentage for 

manufactured products) that are different from those in FTA’s Buy America statute and 

regulations. Thus, conclusions about how these items are classified under the IRA do not 

constitute precedent for future FTA implementation of its Buy America requirements to federally 

funded public transportation projects. 

Sincerely, 

Subash Iyer 

 Chief Counsel