| The One Big Beautiful Bill Act (P.L. 119-21) or Working Families Tax Cut, enacted on July 4, 2025, revised dates and provisions in the Internal Revenue Code that affect some or all of the tax credits described below. Though these pages should not be considered tax advice, they are subject to change as more information becomes available. For additional information, please see Treasury.gov or IRS.gov. |
Qualifying Advanced Energy Project Credit (48C): Overview
The Qualifying Advanced Energy Project Credit (48C) was originally established by the American Recovery and Reinvestment Act of 2009 and subsequently renewed and expanded under the Inflation Reduction Act of 2022 (IRA). The 48C credit is a tax credit for investments in advanced energy projects, as defined in 26 USC § 48C(c)(1) and is intended to build clean energy supply chains, drive investments, and lower costs in energy communities. The IRA provided $10 billion in funding for the expanded 48C(e) Qualifying Advanced Energy Project Credit Allocation Program (48C(e) program). To receive the full value of a 48C credit, projects must meet prevailing wage and registered apprenticeship standards.
The Department of the Treasury and the Internal Revenue Service, in partnership with DOE, conducted two rounds of tax credit allocations 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. The 48C Program is managed by the IRS with assistance from Department of Energy’s (DOE) Office of Manufacturing & Energy Supply Chains (MESC).
- On March 29, 2024, the IRS allocated approximately $4 billion of 48C credits for over 100 projects in approximately 30 states, with approximately $1.5 billion allocated to projects in designated energy communities.
- On January 10, 2025, the IRS allocated approximately $6 billion of the 48C credits for over 140 projects in approximately 30 states, with approximately $2.5 billion allocated to projects in designated energy communities.
Below is additional information about the eligible projects under the 48C(e) program:
- Clean Energy Manufacturing and Recycling Projects: A qualifying advanced energy project in this category involves re-equipping, expanding, or establishing an industrial or manufacturing facility. The facility must manufacture or recycle one or more of the specified advanced energy properties outlined in the Round 2 guidance. Production of energy-intensive materials that have a substantially lower carbon intensity when compared to an appropriate industry-specific benchmark are now eligible under this category. Please review the guidance for an updated list of program priorities.
- Industrial Decarbonization Projects (formerly named Greenhouse Gas Emissions Reduction Projects): An advanced energy project qualifies under this category if it involves retrofitting an industrial or manufacturing facility, particularly in energy-intensive sectors such as cement, iron and steel, aluminum, and chemicals. The retrofit must include the installation of equipment specifically designed to reduce greenhouse gas emissions by at least 20 percent.
- Critical Materials Projects: A qualifying advanced energy project in this category re-equips, expands, or establishes an industrial facility for the processing, refining, or recycling of critical materials (as defined in § 7002(a) of the Energy Act of 2020 (30 U.S.C. § 1606(a)).
Post Allocation: Certification and Place in Service
To claim a 48C credit, the allocated projects must meet the certification and placed in service requirements of the 48C Program. Within two years of receiving an Allocation Letter, awardees must submit information through the 48C portal notifying DOE that the certification requirements have been met. DOE will notify the taxpayer and the IRS that it has received the taxpayer’s notification. The IRS then certifies the 48C Facility by sending a letter (Certification Letter). Within an additional two years of receiving the Certification Letter, the taxpayer must notify DOE that the 48C Facility has been placed in service via the 48C Portal. Failure to meet any of these milestones will result in allocated 48C credits being forfeited. IRS has published Requirements for DOE certification of 48C Allocations, which provides information about the documents to submit for certification.
As required by statute, the 48C(e) Program will publish the names of all organizations with certified projects and the amount of that allocation after projects are certified.
48C Portal
Visit the 48C Portal to manage allocations and find the updated Qualifying Advanced Energy Project Credit 48C Applicant User Guide (May 2025), the Successor-in-interest Allocation Transfer Request User Guide, and other post-allocation resources.
Guidance
- Notice 2024-36
- Notice 2024-36: Read Appendix A (Eligibility) and B (DOE Application Process)
- Notice 2024-36: Read Appendix C, which lists the Section 48C(e) Energy Communities Census Tracts that taxpayers may rely on to substantiate a tax return position.
- Additional Guidance Notice 2023-44.
- Initial Guidance Notice 2023-18.
Frequently Asked Questions (FAQs)
- 48C FAQs - October 10, 2024
- 48C FAQs - July 3, 2024
- 48C FAQs - June 10, 2024
- 48C FAQs - April 29, 2024
- Energy Communities Census Tracts FAQs - April 29, 2024
- The Internal Revenue Service provides frequently asked questions related to the eligibility and application of the credit.
- Section 48 Tax Credit Program Privacy Act and Paperwork Reduction Act Notice
- Section 48 Tax Credit Program Merit Reviewer Registration Privacy Act Statement
Additional Resources
- 48C Round 1 Best Practices document - DOE has posted a 48C Round 1 Best Practices document to assist potential applicants with understanding why they may have been denied a credit in Round 1.
- 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.
- Common themes and issues seen in concept papers submitted in 48C(e) Round 2.
- Common themes and issues seen in concept papers submitted in 48C(e) Round 1.
- Refer to DOE’s draft critical materials for energy list and USGS critical mineral list for eligibility.
- Interagency Working Group’s landing page on 48C Tax Credit Program
- Read Treasury's blog: Anchoring Clean Energy Manufacturing Investments in Coal Country and Beyond | U.S. Department of the Treasury
Questions
Register at and visit the 48C Portal to access the help center on the navigation bar to view additional resources including the Applicant User Guide, and other helpful information.
Any questions or comments can be submitted to the Department of Energy at 48CQuestions@hq.doe.gov. Department of Energy staff cannot provide tax advice.
Round 1: Overview
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.
48C Energy Communities: Section 48C(e) Energy Communities Census Tracts are census tracts in which (1) no pre-IRA 48C projects were located and (2) a coal mine has closed after December 31, 1999 or a coal-fired electric generating unit has been retired after December 31, 2009 or which is directly adjoining to any of these census tracts.
Round 1: Tax Credit Allocations Announced
The Department of Treasury and DOE announced $4 Billion in tax credits to build clean energy supply chains, drive investments, and lower costs in energy communities.
Round 1: Guidance + Updates Round 1 Tax Credit Allocations Announced
The Department of Treasury and DOE announced $4 Billion in tax credits to build clean energy supply chains, drive investments, and lower costs in energy communities.
New Portal Live!
Effective February 29, 2024, the Qualifying Advanced Energy Tax Credit Portal is migrating from eXCHANGE to a new system, 48C Portal. You’ll sign into the new 48C Portal with ID.me instead of Login.gov. You will still be able to access your application information in eXCHANGE, but all future actions will be performed on the new 48C Portal. Allocation decisions for 2023 applicants will only be accessible through the new 48C Portal. More information on the can be found at go live announcement and the 48C Portal applicant user guide.GET HELP: APPLICANT PORTAL
From the new 48C Portal, select Help Center on the navigation bar to view additional help resources including FAQs, the Applicant User Guide, and other helpful information. You will be able to access help articles including How to View Your Application Status and Decisions, and How to Withdraw an Application. Additional help articles will continue to be added to the Applicant Portal. Any questions or comments can be submitted to the Department of Energy at 48CQuestions@hq.doe.gov.
Round 1: 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.
Round 1: Frequently Asked Questions
- 48C FAQs - February 13, 2024
- 48C FAQs - December 21, 2023
- 48C FAQs - December 4, 2023
- 48C FAQs - September 25, 2023
- 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.
Round 1: Resources
- Round 1 Blog: New 48C Tax Credit Will Spur Historic Investments in Manufacturing and Critical Materials
- Round 1 Resource: 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.
- Round 1 Resource: Interagency Working Group’s landing page on 48C Tax Credit Program
- Round 1 Resource: Refer to DOE’s draft critical materials for energy list and USGS critical mineral list for eligibility
Round 1 Webinars: Informational Webinar
DOE hosted a webinar on November 28, 2023, at 12pm ET for an informational webinar on the application process. The webinar will cover the 48C(e) application process and provide guidance for developing a strong application. Watch the webinar or view the webinar slides here. 48C Program
Overview Webinar Video: https://youtu.be/eZCQ9g6k4OQ. This Office of Manufacturing & Energy Supply Chains (MESC) webinar presents an informational webinar on the Qualifying Advanced Energy Project Credit (§48C) application process and provide guidance for developing a strong application. The webinar was held on November 28, 2023, at 12pm ET.
DOE and Treasury previously hosted a virtual informational webinar for potential applicants on June 27, 2023, at 2 p.m. ET. View the webinar slides here.Round 1: 48C Round 1 Virtual Debriefings available - June 17 and 18:
Round 1 applicants who received a written debrief letter can request a 15-minute virtual debriefing session - learn more.
Round 2 Announced
The Department of Treasury issued Notice 2024-36, Appendices A & B (A: Eligibility and B: DOE Application Process, and Appendix C (Section 48C(e) Energy Communities Census Tracts) regarding up to $6 billion in tax credit allocations for the second round of allocations for the 48C(e) program, including approximately $2.5 billion for projects located in 48C(e) designated energy communities. Read the press release.
- January 10, 2025 - Round 2 allocations announced. (Read the press release.)
- October 18, 2024 - 48C full application submissions were due by 11:59 p.m. EST. (Read the release)
- September 16, 2024 - Round 2 Full Applications Informational Webinar | 1 p.m. ET | Watch the Webinar Replay
- August 29, 2024 - 48C full application period opened.
- June 21, 2024 - 48C concept paper submissions were due by 5 pm EST.
- May 22, 2024 - 48C Portal opened for concept paper submission at 9 am EST. (Read the press release)
- May 16, 2024 - Informational Webinar | 12 p.m. ET | Watch the Webinar Replay
- April 29, 2024 - Guidance Released (Press release)
48C Energy Communities: Section 48C(e) Energy Communities Census Tracts are census tracts in which (1) no pre-IRA 48C projects were located and (2) a coal mine has closed after December 31, 1999 or a coal-fired electric generating unit has been retired after December 31, 2009 or which is directly adjoining to any of these census tracts.
Round 2 Application Templates
Templates for Round 2 applications were available on the 48C Portal. Applicants are encouraged to use the 2024 full application forms templates to submit 48C applications, once the portal opened for submissions. Templates provided included:
- Narrative templates: As part of the application submission, applicants were required to submit a narrative that could not exceed 30 pages and a workforce and community engagement plan that could not exceed 5 pages. There were separate narrative templates for each Clean Energy Manufacturing/Critical Materials Projects, Industrial Decarbonization Projects and Workforce and Community Engagement Plans.
- Data sheets: Applicants were required to submit one of the following 48C Application Data Sheet: (1) Clean Energy Manufacturing Projects; (2) Critical Materials Projects; or (3) Industrial Decarbonization Projects. Applicants were required to select the appropriate data sheet based on their project category.
- Business Entity Certification: Applicants were required to submit a business entity certification with their application.
- The templates are found in a knowledge article titled, “2024 Full Application Forms Templates” in the 48C Portal.
Concept paper encourage/discourage notifications to applicants were posted in the 48C portal. The 48C Portal opened for applications on August 29, 2024. An organization that submitted a Round 2 concept paper were permitted to submit a full application regardless of whether they received an encourage or discourage notification. 48C applications were due on October 18, 2024, by 11:59 pm EST.
Round 1: 48C Round 1 Best Practices Document
DOE has posted a 48C Round 1 Best Practices document to assist potential applicants with understanding why they may have been denied a credit in Round 1 and with addressing common issues to ensure high quality concept papers and applications that comply with § 48C requirements and applicable guidance, as described in IRS Notice 2024-36.
48C ROUND 2 Concept Paper Submissions Due June 21, 2024:
DOE 48C Portal opened for concept paper submission on May 22, 2024. Concept paper submission was the first required step in the application process. A concept paper must be submitted to be eligible to submit the full application. The new concept paper templates (Clean Energy and Critical Materials Manufacturing and Recycling Projects - Updated and Industrial Decarbonization Projects - Updated) and datasheet document are available to preview and start collecting the needed information to submit a concept paper. Should any discrepancy occur between the document posted here and the documents in the 48C portal, the ones in the portal override. Concept paper submissions were due June 21, 2024, by 5 pm EST.
The Concept Paper PDF templates were updated as of June 10, 2024, to align with the formatting requirements in Notice 2024-36. No substantive changes were made and applicants who submitted their concept paper prior to June 10, 2024, are NOT expected or required to resubmit with the revised template.
48C ROUND 2 Concept paper templates:
Templates were made available to preview and start collecting the needed information to submit a concept paper. Applicants must submit a completed PDF template for their relevant project category and a completed datasheet. These templates were provided to facilitate the public's access to these documents. Should any discrepancy occur between the document posted here and the documents in the 48C portal, the ones in the portal override.
The Concept Paper PDF templates were updated as of June 10,2024 to align with the formatting requirements in Notice 2024-36. No substantive changes were made and applicants who submitted their concept paper prior to June 10, 2024, are NOT expected or required to resubmit with the revised template.
- Clean Energy and Critical Materials Manufacturing and Recycling Projects - Updated June 10, 2024
- Industrial Decarbonization Projects - Updated June 10, 2024
- 48C datasheet for all projects
48C Blog:
Read Treasury's new blog: Anchoring Clean Energy Manufacturing Investments in Coal Country and Beyond | U.S. Department of the Treasury
48C Informational Webinar:
DOE, IRS, and Treasury hosted a virtual informational webinar for applicants on Monday, September 16, 2024, at 1:00 p.m. Eastern Time. This webinar provided eligible applicants information on how to prepare and submit a full application for Round 2 of the Qualifying Advanced Energy Project Credit (48C) program.
Watch the webinar replay.
48C Energy Communities
Section 48C(e) Energy Communities Census Tracts are census tracts in which (1) no pre-IRA 48C projects were located and (2) a coal mine has closed after December 31, 1999, or a coal-fired electric generating unit has been retired after December 31, 2009, or which is directly adjoining to any of these census tracts.
48C Portal
The 48C Portal is open for registration for any interested applicants, including small-, medium- and large-sized manufacturers. The 48C portal opened for application submission on August 29, 2024. Applications must be submitted through the 48C portal prior to 11:59 pm on October 18, 2024.
Visit the DOE 48C Portal to register. Registered applicants will be able to create, view, and manage their applications. The updated 48C applicant guide (Revised August 2024) is now available.
Interagency Working Group's Past Events
- Interagency Working Group's Recent Events
48C Reviewers
Support 48C as a Reviewer - Now recruiting Round 2 Reviewers!
Are you interested in supporting the implementation of this impactful program? The Office of Manufacturing and Energy Supply Chains has exciting opportunities to contribute to the § 48C Tax Credit Program Application merit review process. The § 48C Tax Credit Program aims to play a critical role to create high-quality jobs, reduce industrial emissions, and increase domestic production of critical clean energy products and materials.To implement this mission, we need support from a diverse group of people with expertise in commercialization, supply chains, industrial decarbonization, and workforce and community engagement. Because the scope of the § 48C program spans multiple technologies and industries in areas such as clean energy manufacturing, critical minerals and industrial decarbonization, we also need support from experts across different technical areas.
Are you considering applying to be a DOE reviewer? As a reviewer, you will:
- Have the opportunity to apply your expertise to inform how DOE supports energy infrastructure and supply chain activities.
- Receive a stipend (only applicable to reviewers external to the federal government)
- Have clear time commitments and expectations, which are clearly described in the brochure below.
Interested in being a reviewer, learn more below.
Round 2: 48C Reviewer Brochure
How to become a reviewer?Those interested in assisting in the merit review process should send an email to 48cProgram@hq.doe.gov with sufficient details. Please do not attach your resume.
Based on the program requirements and specific reviewer needs, 48C program team will get in touch with you on the next steps to complete and on onboarding process.
Reviewer TypesThere are 3 anticipated groups of reviewers for each application:
Special Purpose Reviewers Super Reviewers General Reviewers Expected to review the specific content that relates to the specific sub-elements in each merit review criteria and prepare a summary analysis and high-level list of strengths and weaknesses.
- It is expected that the effort is approximately 3-5 hours per application.
Expected to review the application section that focus on their area of expertise (e.g., commercial viability, supply chain, workforce and community engagement) and provide their score for the merit review criterion, as well as providing comment on strengths and weaknesses.
They will have access to the analysis prepared by Special Purpose Reviewers and, if needed, suggest additional analysis to help with their review. Each application will be reviewed by four Super Reviewers, one for each merit review criterion.
- It is expected that the effort is approximately 6-8 hours per application.
- Towards the end of the merit review process, the Super Reviewers are expected to participate in the merit review meeting where the scores and comments for each application are discussed and consolidated. This may take up to 1-2 days, scheduled in advance.
Expected to review the complete application and provide their scores for all the merit review criteria, in addition to providing comment on strengths and weaknesses.
They will have access to the analysis prepared by Special Purpose Reviewers and, if needed, suggest additional analysis to help with their review.
- It is expected that the effort is approximately 8-12 hours per application.
- Towards the end of the merit review process, the General Reviewers are expected to participate in the merit review meeting where the scores and comments for each application are discussed and consolidated. This may take up to 1-2 days, scheduled in advance.
Desired qualifications:
These reviewers are expected to be in the early stage of their careers in their area of expertise.
Desired qualifications:
These reviewers are expected to be senior experts/leaders in their area of expertise.
Desired qualifications:
These reviewers are expected to be senior subject matter experts in respective technology areas, with broad understanding of the commercial viability, supply chains, general workforce practices for the specific technology areas.
Compensation:
Varies based on terms of actual contract with reviewer, but generally $300-$500 per application, plus $500 for administrative activities such as but not limited to: attending the merit review training, completing vendor paperwork, and/or uploading comments/scores into 48C Portal.
Compensation:
Varies based on terms of actual contract with reviewer, but generally $800-$1,000 per application, plus $500 for administrative activities such as but not limited to: attending the merit review training, completing vendor paperwork, making travel arrangements, and/or uploading comments/scores into 48C Portal.
When travel is required, certain pre-approved costs may be paid by the program, within GSA allowable costs, but time spent traveling will not be reimbursed.
Compensation:
Varies based on terms of actual contract with reviewer, but generally $800-$1,200 per application, plus $500 for administrative activities such as but not limited to: attending the merit review training, completing vendor paperwork, making travel arrangements, and/or uploading comments/scores into 48C Portal.
When travel is required, certain pre-approved costs may be paid by the program, within GSA allowable costs, but time spent traveling will not be reimbursed.
Onboarding and TrainingKBC Energy Solutions, LLC, is supporting the Department of Energy (DOE) Office of Manufacturing and Energy Supply Chains (MESC) in reviewer onboarding. Additional details will be provided later.
All reviewers are required to sign the Nondisclosure Agreement (NDA) and Conflict of Interest and Foreign Government-Sponsored Talent Recruitment Program Involvement forms, in addition to IRS Data Privacy forms.
All reviewers are required to submit for background checks (fingerprinting, background investigation) before they can be considered for merit review of applications.
Several training sessions will be provided on:
- Reviewer Conflict of Interest and Foreign Government-Sponsored Talent Recruitment Program Involvement and Nondisclosure obligations, and Data Privacy requirements.
- 48C Round 2 guidance, technical content background
- Merit review process, review guidelines/rubric
- “Office hours” to answer any questions/concerns before or during the merit review process.