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ARTICLE · 22 FEBRUARY 2023

IRS Issues Initial Guidance On Investment Tax Credits For Qualifying Advanced Energy Projects

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The Inflation Reduction Act ("IRA") renewed tax credits under Section 48C of the Internal Revenue Code for qualifying advanced energy projects.

United StatesEnergy and Natural Resources
Nicholas V. Romanos
Nicholas V. Romanos
Alexandra Levay
Alexandra Levay
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Key Takeaways:

  • The Inflation Reduction Act ("IRA") renewed tax credits under Section 48C of the Internal Revenue Code for qualifying advanced energy projects. The goal of the program is to expand U.S. manufacturing capacity and jobs for clean energy technologies (including production, recycling and refining), to reduce greenhouse gas emissions, and to boost domestic supply chains for critical materials (including specified critical minerals) needed for clean energy technology production.
  • Entities granted certification by the Internal Revenue Service ("IRS") under 48C(e) will be eligible for tax credits equal to up to 30% of qualified investments in qualifying projects. The IRA allocated $10 billion in credits to the 48C(e) program, with $4 billion set aside for projects in certain "energy communities."

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