Manufacturers and other entities that invest in qualifying advanced energy projects may apply for a tax credit through the Department of Energy. 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. 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. Find out how to apply through the Department of Energy. Related Common themes and issues seen in concept papers submitted in § 48C(e) round 1PDF Frequently asked questions about the Qualifying Advanced Energy Project (48C) Credit FS-2023-16, June 2023 — Qualifying Advanced Energy Project Credit IR-2023-108, May 31, 2023 — IRS provides additional guidance for advanced energy projects Publications Additional Guidance for the Qualifying Advanced Energy Project Credit Allocation Program under Section 48C(e) – Notice 2023-44 Initial Guidance Establishing Qualifying Advanced Energy Project Credit Allocation Program Under Section 48C(e) – Notice 2023-18
