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Renewable Energy Tax Credits

Renewable Energy Tax Credits

What Credits are Available?

§48 (ITC)

Investment Tax Credit

§48C

Facilities to Make & Recycle Renewable Energy Products

§45X

Advanced Manufacturing Production Credit

Click on the Credit to Learn More

Talk to a Renewable Energy Tax Credit Specialist Today!

OR

IRC §48

INVESTMENT TAX CREDIT

The Inflation Reduction Act of 2022 brought the most significant and transformative renewable energy incentive opportunities to help US businesses manage and substantially reduce their energy costs and improve their energy security. Taking the next step toward enhancing our renewable energy infrastructure, it builds on gains from the American Recovery and Reinvestment Act of 2009. Not just limited to big energy, utility companies, and tax equity investors, the benefits of clean energy are available to any business that consumes electricity in its day-to-day operations.

  • Wind
  • Solar
  • Geothermal
  • Energy Storage
  • Waste Energy Recovery
  • Biogas
  • Microturbines
  • Fuel Cells
  • Qualified hydropower
  • Marine & hydrokinetic
  • Combined Heat and Power (CHP) or Cogeneration – phase out 2025
  • Microgrid Controllers – phase out 2025
  • Electrochromic Glass – phase out 2025
  • Credits for certain “Energy Projects” can be increased 5x by meeting prevailing wage and apprenticeship rules.
  • The Energy Credit can be treated as a tax payment if the taxpayer is a Not-for-Profit entity per §6417
  • Credit rates range from 6% – 30% depending on the type, construction start date, and placed-in-service date
  • The Energy Credit is a “Specified credit” which can offset AMT per §38(c)(4)(B)(x)
  • Property must conform to performance and quality standards
  • Requires a §50(c)(3) basis reduction of 50% of the ITC
  • The Energy Credit can be transferred per §6418
  • Property must be depreciable

OR

IRC §45X

IF YOU ARE…

  • Manufacturing certain renewable energy or energy storage products, parts, or components in the US
  • Producing critical minerals in the US, including aluminum, beryllium, chromium, cobalt, lithium, and others
  • Selling to an unrelated person as a part of your company’s trade or business

YOU MAY QUALIFY FOR A PRODUCTION TAX CREDIT FOR UP TO 10 YEARS THROUGH 2032

Eligible Components

  • Photovoltaic cells
  • Photovoltaic wafers
  • Polymeric back sheets
  • Solar grade polysilicon
  • Solar modules
  • Solar trackers and components, including torque tubes and structural fasteners
  • Blades
  • Nacelles
  • Towers
  • Offshore wind foundations
  • Related offshore wind vessels
  • Central inverters with a capacity greater than 1 MW
  • Commercial inverters suitable for commercial or utility-scale applications
  • Distributed wind inverters with a capacity of up to 150 kilowatts
  • Microinverters with a rated output of 120/240-volt single phase or 208/480 three-phase power
  • Residential inverters with a rated output of 120/240-volt single-phase power
  • Utility inverters with a rated output of not less than 600 volt three-phase power
  • Electrodes
  • Battery cells
  • Battery modules
  • Minerals that are critical components in the manufacture of certain renewable energy products
  • Aluminum, beryllium, chromium, cobalt, graphite, lithium, nickel, tungsten and others

OR

IRC §48C

IF YOU ARE…

  • Expanding your plant for manufacturing renewable energy products
  • Adding or expanding recycling facilities for renewable energy equipment or critical materials and minerals
  • Planning to install equipment in your plant to reduce greenhouse gases

YOU MAY QUALIFY FOR UP TO A 30% FEDERAL TAX CREDIT

Advanced Energy Projects Program

If you answer yes to any of these questions, the Advanced Energy Projects Program can help you!

This program awards allocations through an ongoing application process. Even if you can’t use the credits, they can be sold for cash through the provisions of the Inflation Reduction Act of 2022.

EXAMPLES

  • Solar, hydro, wind, geothermal, or other renewable energy equipment
  • Fuel cells, microturbines, or energy storage systems
  • Electric grid modernization equipment and components
  • Carbon capture and sequestration equipment, or used for reducing greenhouse gas emissions
  • Equipment for refining or blending renewable fuels
  • Equipment for energy conservation for residential, commercial, or industrial use
  • Energy storage systems for electric or hybrid vehicles

EXAMPLES

  • Low- or zero-carbon process heat systems
  • Carbon capture, transport, utilization and storage systems
  • Energy efficiency and reduction in waste from industrial processes
  • Any other industrial technology designed to reduce greenhouse gas emissions

CRITICAL MATERIALS

  • Including non-fuel minerals, elements, substances, or materials with high risk of supply chain disruption. They serve essential functions in energy technologies that produce, transmit, store, or conserve energy, as well as those using critical minerals like lithium and cobalt.

CRITICAL MINERALS

  • Prominent examples of critical minerals include lithium and cobalt. For more information, refer to the Department of the Interior’s 2022 Final List of Critical Minerals.

Ready to find out if you qualify?

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