OPPORTUNITY:
The Qualifying Advanced Energy Project Credit (48C) program was established by the American Recovery and Reinvestment Act of 2009 and expanded with a $10 billion investment under the Inflation Reduction Act of 2022. The Advanced Energy Project Credit provides a tax credit for investments in advanced energy projects.
DESCRIPTION:
The Department of the Treasury and the Internal Revenue Service, in partnership with DOE, have announced up to $4 billion in a first round of tax credits for projects that expand clean energy manufacturing and recycling and critical materials refining, processing, and recycling, and for projects that reduce greenhouse gas emissions at industrial facilities.
Approximately $1.6 billion of this allocation will be set aside for projects in designated energy communities. The program will provide an investment tax credit of up to 30% of qualified investments for certified projects that meet prevailing wage and apprenticeship requirements.
For the purposes of determining eligibility for the § 48C credit, a “qualifying advanced energy project” must be for one of the following categories:
- Clean Energy Manufacturing and Recycling Projects
- Greenhouse Gas Emission Reduction Projects
- Critical Material Projects
ELIGIBLE APPLICANTS:
Taxpayers of U.S. owned facilities
FUNDING AVAILABLE AND APPLICATION WINDOW:
FUNDING AVAILABILITY: $ 4 billion -first round with $1.6 billion for designated energy communities.
APPLICATION DEADLINES: The concept paper deadline is due by July 31, 2023, and full applications are due Fall 2023-Winter 2023-2024
