The Qualifying Advanced Energy Project Credit (48C) program was established by the American Recovery and Reinvestment Act of 2009 and expanded with a $10 billion investment under the Inflation Reduction Act of 2022. The Advanced Energy Project Credit provides a tax credit for investments in advanced energy projects, as defined in 26 USC § 48C(c)(1).
The Department of the Treasury and the Internal Revenue Service, in partnership with DOE, have announced up to $4 billion in a first round of tax credits 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.
Approximately $1.6 billion of this allocation will be set aside for projects in designated energy communities. The program will provide an investment tax credit of up to 30% of qualified investments for certified projects that meet prevailing wage and apprenticeship requirements.
Applicant Portal - Concept Papers Were Due Thursday, August 3, 2023 at 12 p.m. ET (noon)
- Apply at https://48c-exchange.energy.gov/
- Concept papers (5-pages in length) are required to be eligible to apply for the tax credit.
Guidance
- Additional Guidance Notice 2023-44.
- Initial Guidance Notice 2023-18.
- Read Appendix C, which lists the Section 48C(e) Energy Communities Census Tracts that taxpayers may rely on to substantiate a tax return position.
Blog
Frequently Asked Questions (FAQs)
- 48C FAQs - September 25, 2023 - NEW questions added.
- 48C FAQs - July 31, 2023
- 48C FAQs - July 21, 2023
- 48C FAQs - July 17, 2023
- 48C FAQs - July 13, 2023.
- The Internal Revenue Service provides frequently asked questions related to the eligibility and application of the credit.
Program Resources
- 48C designated energy communities map -NOTE: The mapping tool may not be relied upon by taxpayers to substantiate a tax return position or for determining whether certain penalties apply and will not be used by the IRS for examination purposes. The mapping tool does not reflect the application of the law to a specific taxpayer’s situation, and the applicable Internal Revenue Code provisions ultimately control.
- Interagency Working Group’s landing page on 48C Tax Credit Program
- Refer to DOE’s draft critical materials for energy list and USGS critical mineral list for eligibility
Informational Webinar
The 48C eXCHANGE portal is open for registration and concept paper submission. Taxpayers must submit their concept papers through DOE’s 48C eXCHANGE portal prior to 12 p.m. ET on July 31, 2023.
DOE and Treasury hosted a virtual informational webinar for potential applicants on June 27, 2023, at 2 p.m. ET. Watch the webinar below, or view the webinar slides here.
Help with Online Applicant Portal
Applicants may email InfrastructureExchangeSupport@hq.doe.gov for questions regarding the registration process or submitting your application on the eXCHANGE applicant portal.
Any questions or comments regarding the non-tax aspects of this notice can be submitted to the Department of Energy at 48CQuestions@hq.doe.gov.