Manufacturers and other entities that invest in qualifying advanced energy projects may apply for a tax credit through the U.S. Department of Energy (DOE). 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. Application portal update As of Feb. 29, 2024, the Qualifying Advanced Energy Tax Credit Portal migrated from eXCHANGE to a new system, the 48C Portal. This new DOE portal uses ID.me, a technology provider, for identity verification and sign-in services for 48C program users. You'll need to either sign in to your existing ID.me account or create a new ID.me account and verify your identity with ID.me to access the new 48C Portal. If you have an ID.me account, make sure you add the email address you used for your initial 48C application with Login.gov to your existing ID.me account. You can still view allocation decisions on the new portal. You can access your application information in eXCHANGE, but all future actions will be performed on the new portal. Find out how to apply through the Department of Energy. Related IR-2024-228, Aug. 29, 2024 — Treasury, IRS and DOE announce full applications are open for Qualifying Advanced Energy Project Tax Credit IR-2024-144, May 22, 2024 — Department of Treasury, IRS and Department of Energy announce opening date for the Qualifying Advanced Energy Project Credit new allocation round Requirements for DOE certification of 48C allocations IR-2024-124, April 29, 2024 — IRS provides guidance for the 2024 allocation round for the Qualifying Advanced Energy Project Credit Program Common themes and issues seen in concept papers submitted in § 48C(e) round 2 PDF Common themes and issues seen in concept papers submitted in § 48C(e) round 1 PDF 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 Guidance Guidance Regarding the 2024 Allocation Round of Qualifying Advanced Energy Project Credit Program PDF – Notice 2024-36 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
