Advanced Energy Project Credit

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

 

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.

Other TCS Resources:

TCS CCS Resource Page

TCS Comments to the IRS on Elective Payment

TCS Comments to the IRS on Transfer of Certain Credits