48C: Advanced Energy Project Credit
Federal Agency
Sub-Department
Internal Revenue Service (IRS)
Purpose
To invest in advanced energy projects, as defined in 26 USC ยง 48C(c)(1). Examples of qualified advanced energy projects may include a broad scope of technologies, such as renewable energy, energy storage, carbon capture and removal, energy conservation, electric vehicles, and more.
Applicant and/or Project Eligibility Requirements
An qualified project is that (1) re-equips, expands, or establishes an industrial or manufacturing facility for the production or recycling of a range of clean energy equipment and vehicles; (2) re-equips an industrial or manufacturing facility with equipment designed to reduce greenhouse gas emissions by at least 20%; or (3) re-equips, expands, or establishes an industrial facility for the processing, refining, or recycling of critical materials. For a full list of qualified advanced energy projects, see Other Notes.
Decarbonization Considerations
To qualify as an eligible greenhouse gas emissions reduction project, an entity must install technology in an industrial or manufacturing facility to reduce greenhouse gas emissions by at least 20%.
Equity Considerations
Consider working with regional economic development commissions and other community-based organizations to determine the most equitable local and regional partnerships.
Helpful Tips
Direct Pay is eligible for this credit for tax-exempt entities. To learn more about how these tax credits work for entities with and without tax liability, check out our Funding Guidance here: https://cityrenewables.org/funding-guidance/understanding-available-incentives/tax-credits-for-renewable-energy/
Other Notes
Check the full list of qualified energy projects here: https://www.govinfo.gov/content/pkg/USCODE-2013-title26/pdf/USCODE-2013-title26-subtitleA-chap1-subchapA-partIV-subpartE-sec48C.pdf For more information on prevailing wage and apprenticeship requirements, see here: https://www.irs.gov/credits-deductions/prevailing-wage-and-apprenticeship-requirements As of Feb. 29, 2024, the Qualifying Advanced Energy Tax Credit Portal migrated from eXCHANGE to a new system, the 48C Portal. This new DOE portal uses ID.me, a technology provider, for identity verification and sign-in services for 48C program users.