DEPARTMENT OF THE TREASURY

WASHINGTON, D.C. 20220

October 29, 2022

via Email

Dear Tribal Leader:

As the Point of Contact for Tribal Consultation for the U.S. Department of the Treasury

(Treasury), I invite you to consultations on the Inflation Reduction Act of 2022 (IRA).

These consultations will be held virtually on Monday, November 28, 2022, 2pm-5pm 

EDT, and Tuesday, November 29, 2022, 2pm-5pm EDT.

Background

The IRA represents the most significant legislation to invest in clean energy and 

address climate change in our nation’s history. Of the IRA’s $369 billion investment in 

addressing climate change, $270 billion will be delivered through tax incentives, putting 

Treasury and the Internal Revenue Service (IRS) at the forefront of this Act’s

implementation.

On October 5, 2022 ,Treasury and the IRS issued a set of Notices requesting public 

comment on implementing key provisions. 

1. Notice 2022-49: Energy Generation Incentives: Production Tax Credit, 

Investment Tax Credit, Zero-Emission Nuclear Credit, Clean Electricity 

Production Credit, Clean Electricity Investment Credit, Low Income Community 

Adder to Investment Tax Credit

2. Notice 2022-51: Credit Enhancements: Prevailing Wage, Apprenticeship, 

Domestic Content, Energy Communities provisions that increase the value of 

multiple credits

3. Notice 2022-48: Incentives for Homes and Buildings: Energy Efficient Home 

Improvement Credit, Residential Clean Energy Credit, New Energy Efficient 

Home Credit, Energy Efficient Commercial Building Deduction

4. Notice 2022-46: Consumer Vehicle Credits: Clean Vehicle Credit, Credit for 

Pre-Owned Clean Vehicles

5. Notice 2022-47: Manufacturing Credits: Advanced Energy Project Credit, 

Advanced Manufacturing Production Tax Credit

6. Notice 2022-50: Credit Monetization: Direct Pay, Transfer of Certain Credits

The Notices seek initial input from the public on specific questions, as well as requests 

for general comments. Responses will inform Treasury and the IRS’ implementation of 

this landmark legislation.

Indian Tribal governments and Indian Lands are referenced in the following sections of 
the Act: 

• Sec. 13103. Increase in Energy Credit for Solar and Wind Facilities Placed 

in Service in Connection with Low-Income Communities. 

Amends Section 48 of the Internal Revenue Code of 1986 (Code) to increase 

credits for solar and wind facilities generating electricity in low-income 

communities, on Indian land, or as part of a low-income economic benefit project 

or a low-income residential building project (including programs administered by 

Tribally designated housing entities). See Notice 2022-49: Energy Generation 

Incentives.

• Sec. 13303. Energy Efficient Commercial Buildings Deduction.

Amends Section 179D of Code to provide increased deductions for energy 

efficient commercial buildings, and to permit tax-exempt owners of such facilities 

to allocate their tax deduction to the person designing the property.

o Tax-exempt entities defined to include Indian Tribal governments and 

Alaska Native Corporations. See Notice 2022-48: Incentives for Homes 

and Buildings.

• Sec. 13401. Clean Vehicle Credit.

Amends Section 30D(b) of the Code to allow taxpayers to elect to transfer their 

“new clean vehicle” tax credit to car dealers registered with the Secretary of the 

Treasury or her delegate (Secretary). 

o The definition of “Dealer” includes a person licensed by an Indian Tribal 

government or Alaska Native Corporation to engage in the sale of 

vehicles. See Notice 2022-46: Consumer Vehicle Credits.

• Sec. 13702. Clean Electricity Investment Credit.

Amends Section 48C of the Code to create a clean electricity investment credit 

for a taxable year in an amount equal to the applicable percentage of the 

qualified investment for that year. Where the Secretary makes an allocation of 

environmental justice capacity limitation, the credit will be increased: 

o 10 percentage points for facilities located on Indian lands; and 

o 20 percentage points for facilities that are part of a program administered 

by a Tribally designated housing entity, where the financial benefits of the 

electricity produced by the building are allocated equitably among the 

occupants of the building’s dwelling units. See Notice 2022-47: 

Manufacturing Credits.

• Sec. 13801. Elective Payment for Energy Property and Electricity Produced 

from Certain Renewable Resources, Etc.

Under section 6417 of the Code, “tax-exempt” entities—defined in the statute to 

include Indian Tribal governments and Alaska Native Corporations—may elect to

monetize certain tax credits for alternative re-fueling properties, renewable 

electricity production, carbon oxide sequestration, zero-emission nuclear power 
production, clean hydrogen production, qualified commercial vehicles, advanced 

manufacturing production, clean electricity production, clean fuel production, 

energy activities under section 48 of the Code, qualifying advanced energy 

projects, and clean electricity investments; and establishes special rules. See

Notice 2022-50: Credit Monetization.

Pursuant to Executive Order 13175, President Biden’s Presidential Memorandum for 

Tribal Consultation and Strengthening Nation to Nation Relationships, and Treasury’s 

Action Plan for Tribal Consultation and Collaboration, Treasury is commencing 

consultation to inform the development of guidance to implement the Act with regard to 

provisions that affect Indian Tribal governments. 

Specifically, Treasury and the IRS request the assistance of Tribal leaders in 

addressing the following questions: 

1. Section 6417(d)(1)(A) of the Code defines the term “applicable entity” to include 

an Indian Tribal government (as defined in section 30D(g)(9) of the Code) or any 

Alaska Native Corporation (as defined in section 3 of the Alaska Native Claims 

Settlement Act (43 U.S.C. 1602(m)), amongst other entities.

(i) What clarification is needed (if any) regarding the terms used in section 

6417?

(ii) What factors should Treasury and the IRS consider in setting procedures 

for an Indian Tribal government or Alaska Native Corporation to make an 

election for an elective payment under section 6417?

(iii) What features should Treasury and the IRS consider in setting procedures 

for claiming an elective payment for an Indian Tribal government or Alaska 

Native Corporation that may be unique or different from procedures for 

other applicable entities?

2. Section 48(e) and section 48E(h) of the Code increase the credit available under 

section 48 and section 48E for facilities with a maximum net output of less than 5 

megawatts (as measured in alternating current) by providing 

o A 10 percent increase in the energy percentage (in the case of section 

48(e)) or the applicable percentage (in the case of section 48E(h)), used 

to calculate the credit amount, for certain facilities located in low-income 

communities (as defined in section 45D(e) of the Code) or on Indian land 

(as defined in section 2601(2) of the Energy Policy Act of 1992 (25 U.S.C. 

3501(2))), or 

o A 20 percent increase in the energy percentage or applicable percentage 

for certain facilities that are part of certain low-income residential building 

projects or low-income economic benefit projects.
These increased credit amounts are limited by the facility’s environmental justice 

solar and wind capacity limitation allocation (section 48(e)) or its environmental 

justice capacity limitation allocation (section 48E(h)).

(i) What methods currently exist or need to be designed for a taxpayer to 

certify that a project is being built in a low-income community, on Indian 

land, or as part of a low-income residential building project or a qualified 

low-income economic benefit project?

(ii) On what basis should the overall environmental justice solar and wind 

capacity limitation (section 48(e)) or the overall environmental justice 

capacity limitation (section 48E(h)) be allocated amongst facilities located 

in low-income communities, located on Indian land, that are part of lowincome residential building projects, or that are part of low-income 

economic benefit projects?

(iii) What factors should Treasury and the IRS use to develop criteria for 

allocating environmental justice solar and wind capacity limitation (section 

48(e)) or environmental justice capacity limitation (section 48E(h))?

3. Section 45(b)(7)(A) of the Code provides, in general, that a taxpayer satisfies prevailing 

wage requirements with respect to a qualified facility if the taxpayer ensures that any 

laborers and mechanics employed by the taxpayer or any contractor or subcontractor in 

the construction of such facility, and with respect to any taxable year for any 

portion of such taxable year that is within the period described in section 

45(a)(2)(A)(ii) of the Code, the alteration or repair of such facility, are paid wages 

at rates not less than the prevailing rates for construction, alteration, or repair of 

a similar character in the locality in which such facility is located as most recently 

determined by the U.S. Secretary of Labor, in accordance with subchapter IV of 

chapter 31 of title 40, United States Code.

(i) What (if any) guidance is needed with regard to prevailing wage rates for 

laborers or mechanics determined by the U.S. Secretary of Labor with 

regard to construction, alteration, or repair of facilities on Indian land or 

facilities of an Indian Tribal Government or Alaska Native Corporation?

4. Sections 45(b)(9), 48(a)(12), 45Y(g)(11) and 48E(a)(3)(B) of the Code provide 

domestic content requirements that must be satisfied by a qualified facility to be 

eligible for bonus credit amounts under those sections of the Code.

o Sections 45(b)(9)(A) and 45Y(g)(11)(A) provide for a 10 percent domestic 

content bonus credit amount if the domestic content requirements are 

satisfied. 

o Under sections 48(a)(12)(C) and 48E(a)(3)(B), the domestic content 

bonus credit amount is reduced from 10 percent to 2 percent if certain 

other requirements are 8 not satisfied. 
Section 45(b)(9)(B)(i) provides that the domestic content requirement is satisfied 

with respect to any qualified facility if the taxpayer certifies to the Secretary (at 

such time, and in such form and manner, as the Secretary may prescribe) that 

any steel, iron, or manufactured product that is a component of such facility 

(upon completion of construction) was produced in the United States (as 

determined under 49 C.F.R. § 661). 

Section 45(b)(9)(B)(ii) provides that in the case of steel or iron, section

45(b)(9)(B)(i) is applied in a manner consistent with 49 C.F.R. 661.5. For 

purposes of section 45(b)(9)(B)(i), section 45(b)(9)(B)(iii) provides that the 

manufactured products that are components of a qualified facility upon 

completion of construction are deemed to have been produced in the United 

States if not less than the adjusted percentage (as determined under section

45(b)(9)(C)) of the total costs of all such manufactured products of such facility 

are attributable to manufactured products (including components) that are 

mined, produced, or manufactured in the United States.

(i) Are there features of the domestic content requirements that are of 

particular interest to Indian Tribal governments or Alaska Native 

Corporations?

(ii) What (if any) guidance is needed for Indian Tribal governments or Alaska 

Native Corporations regarding the domestic content requirements?

5. Section 30D of the Code will allow taxpayers purchasing qualifying clean vehicles 

to elect to transfer a “new clean vehicle” tax credit to car dealers registered with 

the Secretary, including a person licensed by an Indian Tribal government or 

Alaska Native Corporation to engage in the sale of vehicles. Treasury and the 

IRS expect to provide procedures on how licensed dealers may register with the 

Secretary.

(i) Are there particular or unique features of licenses provided by an Indian 

Tribal government or Alaska Native Corporation to dealers?

(ii) What unique factors (if any) should Treasury and the IRS consider in 

developing these registration procedures for dealers that are licensed by 

an Indian Tribal government or Alaska Native Corporation?

Register here for one or more days of the consultation.

We respectfully request that each Tribe register one person to participate in the 

consultation. All others are welcome to register as listen-only participants

Please note that consultations are off the record and not for press purposes.

We will send out an Agenda and a list of registered speakers before or on November 
21, 2022. 

We hope that you will be able to join us for this important discussion and value your 

participation.

Sincerely,

Chief Lynn Malerba

Treasurer 

Point of Contact for Tribal Consultation 

U.S. Department of the Treasury