Domestic Content
The inflation reduction act’s domestic content bonus is an important tool for investing in american workers and american businesses. Projects that meet the domestic content requirement receive up to a 10-percentage point bonus on top of the 30% ptc or itc. 1
Proudly made in the USA
PanelClaw has a long history of supporting American businesses. We have always produced the large majority of our racking system components in the U.S. using U.S. sourced raw materials. Unlike many other solar industry suppliers, PanelClaw does not have to completely rebuild its supply chain to unlock this attractive incentive for its customers. As a result, PanelClaw customers need not worry about impacts to manufacturing capacity, lead times or pricing.
PanelClaw’s clawFR and clawFRplus mounting systems are manufactured in the U.S.A. We have over 15 years of experience manufacturing flat roof products in the US with an annual capacity of 1.5 GW.
Since the IRA was signed into law in 2022, the Department of Treasury and the Internal Revenue Service have issued guidance for determining domestic content bonus credit amounts on two occasions. The safe harbor table in the most recent guidance from May 2024 includes details for rooftop solar systems, but is still incomplete. Nonetheless, a case can be made for leveraging the credit with PanelClaw’s clawFR and clawFRplus components.
What’s Next?
The US Treasury and IRS expect to issue future updates to further clarify the guidance and have requested input from solar industry stakeholders. PanelClaw is one of very few companies that took up this challenge and worked diligently to provide detailed suggestions on how to adjust the safe harbor table. In fact, PanelClaw is actively working with the Treasury Dept. to clarify the guidance by finishing the table and making it clear how to qualify for the credit without fear of rejection. To our knowledge, we are the only roof top racking company to engage with Treasury in this manner and we’re proud of this effort.
Do not get distracted by the marketing noise. Do work with your CFO and tax experts/advisors to get their take. We are committed to providing the support and documentation required to monetize this credit and any others that involve our racking. For those that want to leverage the DMBC using current IRS guidance, your sales representative can provide our declaration to assist you in obtaining the credit. Further, we will continue working through SEIA and on our own to clear up DMBC IRA Guidance.
- the project has a maximum net output of less than 1 megawatt -or-
- the project satisfies the prevailing wage and apprenticeship requirements
Otherwise, projects with domestic content receive a 2% bonus.
