On August 27, 2024, the Office of the U.S. Trade Representative (USTR) published a notice to the Federal Register "invit[ing] written comments from the public concerning the issues raised" by China in its dispute before the World Trade Organization (WTO) of certain clean energy tax credits in the Inflation Reduction Act. China's allegations concern "aspects of five tax credits created or amended by the Inflation Reduction Act, and related implementing guidance issued by the U.S. Department of the Treasury and the Internal Revenue Service, and the U.S. Department of Energy." The five tax credits are:
- The Clean Vehicle Tax Credit (Internal Revenue Code Sec. 30D)
- The Investment Tax Credit for Energy Property (Internal Revenue Code Sec. 48)
- The Clean Electricity Investment Tax Credit (Internal Revenue Code Sec. 48E)
- The Production Tax Credit for Electricity from Renewables (Internal Revenue Code Sec. 45)
- The Clean Electricity Production Tax Credit (Internal Revenue Code Sec. 45Y)
For more information on China's allegations, please see our June 4, 2024, article.
As background, in March of this year, "China requested Consultations with the United States concerning" the energy tax credits "and related implementing guidance." In April, the United States agreed to China's request, and the two parties held consultations in May. The consultations were unsuccessful, and in July, China requested that the WTO establish a WTO dispute settlement panel to address China's allegations. The United States, exercising its right to reject China's initial request, blocked the request. On September 23, China made its second request, which the United States could not block, as the WTO rules do not permit a "member to block a second panel request." Therefore, China's challenge is moving forward, and the WTO will be forming the requested dispute panel to assess China's claims.
The USTR notice invites the public to submit written comments concerning the issues raised by China. While comments were due by September 26, 2024, "to be assured of timely consideration by USTR," USTR will continue to accept comments during the pendency of the dispute settlement proceeding. Comments, which must be in English, can be submitted via Regulations.gov's USTR-2024-0014 docket. Those interested in submitting comments should carefully review the Federal Register notice, including the requirements for submitting business confidential information.
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