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48/48E: Clean Electricity Investment Tax Credit

Federal Agency


Internal Revenue Service (IRS)


To provide a tax credit for facilities that generate clean electricity. 48 is applicable to facilities that generate clean electricity before 2025. 48E is a technology-neutral tax credit for investment in facilities that generate clean electricity starting in 2025.

Applicant and/or Project Eligibility Requirements

Eligible technologies include fuel cell, solar, geothermal, small wind, energy storage, biogas, microgrid controllers, combined heat and power properties before 2025 and any resource with an estimated net greenhouse gas emissions rate of zero after 2025

Decarbonization Considerations

Updates in the IRA provide greater opportunities to utilize this tax credit. Consider under-utilized properties like brownfields for new clean energy projects to take advantage of bonus credits. Additionally, consider pairing energy storage with any of your energy projects to increase community resiliency and the scale of your project.

Equity Considerations

Pairing this tax credit with bonus adders like the Energy Communities and Low-Income Communities bonuses by siting clean energy projects in applicable locations can reduce the cost of the overall project and provide additional benefits to disadvantaged communities. Learn more about these bonus adders here:

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: See the latest IRS guidance on ITC here:

Other Notes

Learn more about tax credits for renewable energy here: Entities can only elect the ITC (48) or the PTC (45). For more information on the tax credits and which to select, see this resource from DOE: For projects <1 MW, entities do not have to meet the prevailing wage and apprenticeship requirements

Deadline (Announced or Anticipated)

Available for projects that begin construction or are placed in service after December 31, 2024. Tax credit 48 available for projects that begin construction or are put in servie before 2025.

Funding Available

Up to 30% of eligible project costs. If project does not meet prevailing wage and apprenticeship requirements, the credit is only worth 6% of the tax basis. Note that projects less than 1MW do not need to meet prevailing wage and apprenticeship requirements to still earn 30% of the tax basis.

Max Award Amount


Expected Allocations

Uncapped for 10 years

Average Award (Estimated)


Matching Funds


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