US Treasury & Energy Dept. Offer $6B in Clean Energy Tax Credits
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The Department of the Treasury and the Internal Revenue Service (IRS), in collaboration with the Department of Energy (DOE), announced $6 billion in tax credit allocations for projects that expand clean energy manufacturing and reduce greenhouse gas emissions. This funding is part of the second round of the Qualifying Advanced Energy Project Credit (48C) program, established by the American Recovery and Reinvestment Act of 2009 and expanded under the Inflation Reduction Act of 2022. Previously, on March 29, 2024, the IRS allocated approximately $4 billion of 48C credits for over 100 projects across 35 states.
Boosting Clean Energy: Biden-Harris Administration Announces Tax Credit Allocations
The Biden-Harris administration, as part of their economic strategy, recently announced up to $6 billion in second round tax credits for projects aimed at expanding clean energy manufacturing, recycling and critical materials refining. The initiative, managed by the Office of Manufacturing & Energy Supply Chains (MESC), also targets projects aiming to reduce industrial greenhouse gas emissions.
The Qualifying Advanced Energy Project Credit (48C) was established in 2009 and expanded under the 2022 Inflation Reduction Act (IRA). The IRA provided $10 billion for the expanded 48C(e) program, a tax credit initiative for investments in advanced energy projects. To reap the full 48C credit benefits, projects must meet specific wage and apprenticeship standards. In March 2024, the IRS allocated roughly $4 billion of 48C credits for over 100 projects across 35 states, with about $1.5 billion allocated to energy community projects.
“The guidance announced today will help spur the creation of quality jobs across our country, while strengthening our energy resilience and security,” said Deputy Secretary of Energy David Turk. Learn more.
Informational Webinar — May 16, 2024 at 12:00 pm ET
The DOE and Treasury are hosting a virtual webinar on Thursday, May 16, 2024, at 12:00 PM ET. The webinar aims to provide information about the second allocation round and how to prepare and submit concept papers. Webinar Registration.
Join as a Reviewer for the 48C Program
Interested in assisting the implementation of this program? The Office of Manufacturing and Energy Supply Chains has exciting opportunities to contribute to the § 48C Tax Credit Program Application merit review process aimed at creating high-quality jobs, reducing industrial emissions, and boosting domestic clean energy production. Learn more at Qualifying Advanced Energy Project Credit (48C) Program.
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