Qualifying Advanced Energy Project Credit (48C) Program
The Qualifying Advanced Energy Project Credit (48C) program was established by the American Recovery and Reinvestment Act of 2009 and expanded with a $10 billion investment under the Inflation Reduction Act of 2022. The Advanced Energy Project Credit provides a tax credit for investments in advanced energy projects, as defined in 26 USC § 48C(c)(1).
The Department of the Treasury and the Internal Revenue Service, in partnership with DOE, have announced up to $4 billion in a first round of tax credits for projects that expand clean energy manufacturing and recycling and critical materials refining, processing and recycling, and for projects that reduce greenhouse gas emissions at industrial facilities.
Approximately $1.6 billion of this allocation will be set aside for projects in designated energy communities. The program will provide an investment tax credit of up to 30% of qualified investments for certified projects that meet prevailing wage and apprenticeship requirements.