President Joe Biden's Inflation Reduction Act , signed into law last year, offers billions of dollars in tax credits for facilities using American equipment to speed decarbonization of the U.S. power sector, create domestic jobs and challenge China's dominance in manufacturing.
To qualify for the bonus, the IRA specifies that all of a project's iron or steel products must be "melted and poured" domestically and that 40% of the cost of so-called manufactured products must be made in the United States. For offshore wind, a new U.S. industry, domestic content must make up 20% of costs.
That means that solar cells, which are assembled into panels, could be made overseas so long as the domestic content cost threshold is met by other components in a facility's manufactured products. In a statement, the group said it was still analyzing the details of Treasury's announcement, which it said would "spark a flood of investment in American-made clean energy equipment and components."