UNDERSTANDING HOW BAYWA R.E. CATEGORIZES OUR USA MANUFACTURED PRODUCTS
Assembled in USA
- The broadest category for any products with country of origin as USA
- Labeling of the product must comply with Federal Trade Commission (FTC) rules and enforcement policy
- Express Claims may include: “Made in USA,” “Our products are American-made,” “USA,” “Manufactured in USA,” or “Built in USA.”
- Intended to represent products that are “all or virtually all” made in the USA
- Room for qualified exceptions, but could be deceptive in practice and thus hard to guarantee claim is legitimate in all cases
- No further documentation or authorization available from the manufacturer, other than product labelling
Build American Act (BAA) Compliant
- Broadly, this product complies with any government funded project requiring a certain total percentage of domestically produced equipment be utilized
- Documented via a certified letter or compliance certificate specifically identifying the US Government Act for which the product meets compliance requirements (e.g. Build America Act (BAA), Build America, Buy America (BABA) Act)
- This designation is binary (compliant or not) and applies to the entire value of the finished product regardless of origin of the components
- Badge indicates that documentation is available from the manufacturer for this product, and identifies the specific Act(s) for which the products domestic manufacturing (or qualified exemptions) apply
Domestic Content Compliant
- Specifically managed products with manufacturer authorized contributing domestic content component values, specifically for use under the 2022 IRA Domestic Content Commercial Tax Credit adder (ITC and PTC)
- Under the current IRA Policy and guidance for this tax credit adder, a finished product must contain domestically manufactured components, and be assembled, finished, or packaged in the USA
- The amount of domestic content must be determined and documented by the manufacturer under either the direct cost using the Adjusted Percentage Rule or using the Elective Safe Harbor rate tables
- Compliance documentation, including the contribution rate, must be secured from the manufacturer. Reference to the specific project utilization of the procured and installed compliant equipment may also be required
- Badge indicates compliance with these requirements and has been verified for this specific product and SKU name only. Alternative non-domestic content equivalent product may also be available
Disclaimer: The information provided herein is for general informational purposes only and should not be construed as tax, legal, accounting or financial advice. BayWa r.e. and its employees are not qualified in these fields and do not hold any relevant certifications or licenses. Before making any decisions related to taxes and the matters herein, please seek the assistance of a qualified advisor.