On December 12, 2024, the IRS and the Department of the Treasury finalized regulations concerning the energy credit under Section 48 of the Internal Revenue Code, focusing on the investment tax credit (ITC). The ITC serves as a vital incentive for investments in clean energy facilities and energy storage technology. The regulations offer guidance on amendments under the Inflation Reduction Act of 2022, introducing changes to Section 48. Notable revisions include the eligibility of additional energy property for ITC, bonus credits for domestic content, energy communities, and low-income communities. The starting ITC percentage has been reduced from 30% to 6%, with taxpayers needing to meet 'prevailing wage and apprenticeship requirements' to qualify for the 30% ITC. The final regulations also address the definition of 'energy project' and 'unit of energy property,' providing clarity on factors determining these concepts. Taxpayers can now assess factors for an 'energy project' either during construction or when the last energy property is in service, improving certainty and flexibility. The regulations aim to streamline processes for determining eligibility for incentives, enhancing the support for clean energy investments.