Agency: Department of the Treasury
Description:
Credit for eligible projects, including but not limited to investments reequipping, expanding or establishing industrial or manufacturing facilities for production or recycling of certain renewable energy, renewable fuel (defined as low-carbon and low-emission), electric grid equipment, CCS, energy conservation and storage, energy efficiency, certain hybrid, fuel cell, and electric vehicle projects, microturbines, certain heat, “any other industrial technology designed to reduce GHG emissions,” and “processing, refining, or recycling of critical materials.”
Bill Section:
13501
US Code:
26 USC 48C
New or Existing:
Existing
Potential Cost:
$6,300,000,000
Timeline:
Beginning in 2023
Implementation Status/Rulemaking:
On October 24, 2022, the Internal Revenue Service published Notice 2022-47 to request comments on the qualifying advanced energy project credit, with comments due November 4, 2022: Source
On Feb. 13, 2023, the Internal Revenue Service issued Notice 2023-18 to establish and provide initial program guidance for the section 48C(e) program: Source
On May 31, 2023, the Internal Revenue Service issued Notice 2023-44 with guidance on initial projects: Source
On June 20, 2023, the Internal Revenue Service published Notice 2023–44 to provide rules for the interaction between sections 45X and 48C.
TCS Notes:
$10 billion in credits available, of which $4 billion is for projects located in Energy Communities Census Tracts. Some types of projects are required to prove GHG emission reductions while other types of energy, such as renewable fuel, are not.
Elective Payment and Transferability allowed in certain cases.