U.S. Department of Treasury & Energy Announce Up To $6 Billion In Second Round Of Tax Credit Allocations For Projects Expanding Clean Energy Manufacturing
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Yesterday, as part of the Biden-Harris Administration’s economic agenda, the Department of the Treasury and the Internal Revenue Service, in partnership with DOE, announced up to $6 billion in a second round of tax credit allocations 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. DOE’s Office of Manufacturing & Energy Supply Chains (MESC) manages the 48C(e) program on behalf of IRS and Treasury.
The Qualifying Advanced Energy Project Credit (48C) was established by the American Recovery and Reinvestment Act of 2009 and renewed and expanded under the Inflation Reduction Act of 2022 (IRA). The 48C credit is a tax credit for investments in advanced energy projects, as defined in 26 USC § 48C(c)(1). The IRA provided $10 billion in funding for the expanded 48C(e) Qualifying Advanced Energy Project Credit Allocation Program (48C(e) program). To receive the full value of a 48C credit, projects must meet prevailing wage and registered apprenticeship standards. On March 29, 2024, the IRS allocated approximately $4 billion of 48C credits for over 100 projects across 35 states, with approximately $1.5 billion allocated to projects in designated energy communities.
“Every community can benefit from President Biden’s agenda to Invest in America through the revitalization of domestic manufacturing, the strengthening of domestic clean energy supply chains and the modernization of our nation’s industrial sector,” said Deputy Secretary of Energy David Turk. “The guidance announced today, building on the initial $4 billion in allocations, will help usher in investments that will further spur the creation of quality jobs in every pocket of our country including traditional energy communities, while strengthening our energy resilience and security.”
Informational Webinar — May 16, 2024 at 12:00 pm ET
DOE and Treasury will host a virtual informational webinar for potential applicants on Thursday, May 16, 2024 at 12:00 PM Eastern Time. This webinar will provide information about the second allocation round and how to prepare and submit the concept paper. Webinar Registration.
Support 48C as a Reviewer — Now recruiting Round 2 Reviewers!
Are you interested in supporting the implementation of this impactful program? The Office of Manufacturing and Energy Supply Chains has exciting opportunities to contribute to the § 48C Tax Credit Program Application merit review process. The § 48C Tax Credit Program aims to play a critical role to create high-quality jobs, reduce industrial emissions, and increase domestic production of critical clean energy products and materials.
Learn more at Qualifying Advanced Energy Project Credit (48C) Program.
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