Certain qualified clean energy facilities, property and technology placed in service after 2024 may be classified as 5-year property via the modified accelerated cost recovery system (MACRS) under Provision 13703 of the Inflation Reduction Act of 2022.
On this page
- Who qualifies
- Qualified facilities, property and energy storage technology
- Amount of deduction
- How to claim the deduction
Who qualifies
Owners of qualified facilities, property and energy storage technology placed into service after December 31, 2024, may be eligible for the 5-year MACRS depreciation deduction.
Qualified facilities, property and energy storage technology
The following property may qualify when placed in service after December 31, 2024:
- Qualified facility as defined in 26 U.S. Code Section 45Y(b)(1)(A)
- Qualified property as defined in 26 U.S. Code Section 48E(b)(2), which is a qualified investment as defined in 26 U.S. Code Section 48E(b)(1)
- Energy storage technology as defined in 26 U.S. Code Section 48E(c)(2)
Amount of deduction
Under Internal Revenue Code Section 168(e)(3)(B), qualified facilities, qualified property and energy storage technology are considered 5-year property. These types of property are recoverable under the MACRS.
How to claim the deduction
The deduction is claimed on Form 4562, Depreciation and Amortization.