Applications: Battery Energy Storage Systems (BESS)
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BESS Safe Harbor Table Another provision of the ITC is a new ‘safe harbor’ table. This guidance from the IRS allows taxpayers to determine a project’s domestic content percentage by relying on additive fixed percentages for specifically identified U.S. manufactured components or subcomponents, rather than relying on the manufacturer disclosing its actual direct cost to manufacture products. Projects also can qualify for the domestic content bonus under earlier IRS guidance in Notice 2023-38 by determining an energy project’s total percentage of its manufacturer’s U.S. direct costs of products over all manufacturer’s direct costs of U.S. and non-U.S. products. However, the new safe harbor will make it unnecessary to track down all manufacturer’s costs for many developers and sponsors of energy projects.
Source:Notice 2025-08 Domestic Content guidance
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