IRA Domestic Content Bonus Credit Share

Check whether a clean energy project satisfies the Inflation Reduction Act domestic content threshold and quantify the resulting bonus credit.

Total eligible basis for the ITC or present value of PTC receipts expressed in dollars.
Spend on steel and iron manufactured in the United States for the project scope.
Cost of manufactured product components that meet the domestic content definition.
Incremental credit percentage (for example, 10% for ITC projects that meet prevailing wage and apprenticeship rules).
Optional. Defaults to 40% to mirror the base IRA requirement for most technologies.

Policy modelling aid—coordinate with tax counsel before filing IRS Form 3468 or claiming section 45 production credits.

Examples

  • $12.5M basis, $4.8M domestic steel, $3.9M domestic components, 10% bonus rate, 40% threshold ⇒ Domestic content share: 69.60% — Project meets the 40.00% threshold. Bonus credit value: $1,250,000.00.
  • $18M basis, $4.2M domestic steel, $2.1M domestic components, 10% bonus rate, threshold blank ⇒ Domestic content share: 35.00% — Project does not meet the 40.00% threshold. Bonus credit value: $0.00.

FAQ

How should I treat components sourced from mixed-origin suppliers?

Allocate only the share of cost that meets the domestic content definition. Keep procurement documentation to substantiate the allocation during IRS review.

Does the calculator account for prevailing wage and apprenticeship requirements?

It assumes those requirements are satisfied so the full bonus rate applies. If they are not met, adjust the bonus rate input to reflect the reduced credit.

What threshold should offshore wind or solar projects use after 2026?

Update the optional threshold field with the applicable percentage for the placed-in-service year, which rises to 55% for most utility-scale projects.

Can I use the calculator for production tax credit projects?

Yes. Replace the eligible basis with the present value of expected PTC revenue and input the appropriate bonus percentage for your technology.

Additional Information

  • Result unit: U.S. dollars of incremental credit plus the domestic content share as a percentage.
  • Domestic share caps at 100% to avoid overstating compliance when inputs slightly exceed the eligible basis.
  • Threshold defaults to 40% when omitted, aligning with IRA rules for most projects entering service before 2027.

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