Eligible: Businesses, Local Government, Nonprofits, Public Agencies, Tribes

Apply by Oct 18, 2024

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Advanced Energy Project Tax Credit (48C)

From Internal Revenue Service (IRS)

Manufacturers and other entities that invest in qualifying advanced energy projects may apply for a tax credit through the U.S. Department of Energy (DOE). A total of $10 billion has been allocated for the credits under the Inflation Reduction Act, with $4 billion set aside for projects in certain energy communities over the duration of the program.

  • Overview

    • Type

      Tax Incentive

    • Title

      Advanced Energy Project Tax Credit (48C)

    • Source

      Internal Revenue Service (IRS)

    • Federal or State

      Federal

    • Total Amount

      $10,000,000,000

    • Award Range

    • Cost Share

      Yes

  • Eligibility

    • Audience

      Businesses, Local Government, Nonprofits, Public Agencies, Tribes

    • Sector

      Buildings & Infrastructure, Energy Infrastructure, Renewable Energy

    • Activity

      Efficiency Improvements, Equipment Purchase/Lease, Project Finance

    • Eligibility

      The tax credit equals: 30% of qualified investment costs for projects that meet prevailing wage and apprenticeship requirements, 6% for projects that don’t meet prevailing wage and apprenticeship requirements. A qualifying project: Re-equips, expands or establishes an industrial or a manufacturing facility to produce or recycle specified advanced energy property (defined in Notice 2023-18); Installs technology in an industrial or manufacturing facility to reduce greenhouse gas emissions by at least 20%; Re-equips, expands or establishes an industrial facility to process, refine or recycle critical materials. Projects that produce property for refining or blending non-renewable transportation fuels are excluded.

    • Location

      National

  • Application Process

    • Application Link

      irs.gov

    • Pre-Application?

      Yes

    • Requirements

      This tax credit is available to entities that have already submitted an application under the 48C program. As of August 29, 2024, The U.S. Department of Treasury, the Internal Revenue Service and the U.S. Department of Energy had received over 800 concept papers — project proposals — seeking a total of nearly $40 billion in tax credits, representing $200 billion in total project investments, for Round 2 of the Qualifying Advanced Energy Project Tax Credit (48C) Program. Of the nearly $40 billion, approximately $10.3 billion is from projects in designated energy communities census tracts. Applications are now open and after initial review applicants are encouraged to apply for the next stage of evaluation to determine which projects will receive a tax credit. There is up to $6 billion in tax credit allocations for the second round for the 48C(e) program, including approximately $2.5 billion for projects located in 48C(e) designated energy communities. Applicants who submitted a concept paper, whether they received an encourage or discourage letter, may now submit a full application on the 48C Portal.

    • Disbursement Method

      Credit on federal taxes

  • Important Dates

    • Application Open Date

      Sep 1, 2024

    • Application Close Date

      Oct 18, 2024

    • Application Close Time

      8:59 PM PST

  • Resources & Contacts

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