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48C: Advanced Energy Project Credit

Federal Agency


Internal Revenue Service (IRS)


To provide a tax credit for investments in advanced energy projects that fall under three sub-types: (1) Clean Energy Manufacturing and Recycling Projects, (2) Greenhouse Gas Emission Reduction Projects, and (3) Critical Material Projects, each with their own guidance and definitions.

Applicant and/or Project Eligibility Requirements

Available a project 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 percent; or (3) re-equips, expands, or establishes an industrial facility for the processing, refining, or recycling of critical materials.

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

See the "Equity Design Considerations for Federal Funding" for general considerations and additional sector-based resources:

Helpful Tips

Tax-exempt entities can leverage these credits through a new mechanism known as "elective" or "direct" pay. To learn more about how these tax credits work for entities with and without tax liability, check out our Funding Guidance here:

Other Notes

48C had been enacted in 2009 but was fully allocated after the 2nd allocation round in 2013. The Inflation Reduction Act provides $10 billion of allocations, directs a minimum share to energy communities, and expands eligibility to new types of projects. See common themes in issues in concept paper feedback here:

Deadline (Announced or Anticipated)

August 3, 2023 (Concept Papers - Round 1); Applications for Round 2 are expected in Fall 2023 - Winter 2023/2024

Funding Available


Max Award Amount

None for Round 1

Expected Allocations

While there is no limit to the number of recipients, there is a funding cap

Average Award (Estimated)


Matching Funds


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