U.S. Department of Treasury & Energy Announce Up To $6 Billion In Second Round Of Tax Credit Allocations For Projects Expanding Clean Energy Manufacturing

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Yesterday, as a part of the Biden-Harris Administration’s financial agenda, the Division of the Treasury and the Inner Income Service, in partnership with DOE, announced up to $6 billion in a second spherical of tax credit score allocations for initiatives that increase clear vitality manufacturing and recycling and significant supplies refining, processing and recycling, and for initiatives that cut back greenhouse gasoline emissions at industrial services. DOE’s Office of Manufacturing & Energy Supply Chains (MESC) manages the 48C(e) program on behalf of IRS and Treasury.

The Qualifying Superior Power Venture Credit score (48C) was established by the American Restoration and Reinvestment Act of 2009 and renewed and expanded below the Inflation Discount Act of 2022 (IRA). The 48C credit score is a tax credit score for investments in superior vitality initiatives, as outlined in 26 USC § 48C(c)(1). The IRA supplied $10 billion in funding for the expanded 48C(e) Qualifying Superior Power Venture Credit score Allocation Program (48C(e) program). To obtain the total worth of a 48C credit score, initiatives should meet prevailing wage and registered apprenticeship requirements. On March 29, 2024, the IRS allocated approximately $4 billion of 48C credits for over 100 initiatives throughout 35 states, with roughly $1.5 billion allotted to initiatives in designated vitality communities.

“Every community can benefit from President Biden’s agenda to Invest in America through the revitalization of domestic manufacturing, the strengthening of domestic clean energy supply chains and the modernization of our nation’s industrial sector,” mentioned Deputy Secretary of Power David Turk. “The guidance announced today, building on the initial $4 billion in allocations, will help usher in investments that will further spur the creation of quality jobs in every pocket of our country including traditional energy communities, while strengthening our energy resilience and security.”

Learn more.

Informational Webinar — Could 16, 2024 at 12:00 pm ET

DOE and Treasury will host a digital informational webinar for potential candidates on Thursday, Could 16, 2024 at 12:00 PM Jap Time. This webinar will present details about the second allocation spherical and tips on how to put together and submit the idea paper. Webinar Registration.

Help 48C as a Reviewer — Now recruiting Spherical 2 Reviewers!

Are you interested by supporting the implementation of this impactful program? The Workplace of Manufacturing and Power Provide Chains has thrilling alternatives to contribute to the § 48C Tax Credit score Program Software benefit evaluate course of. The § 48C Tax Credit score Program goals to play a essential position to create high-quality jobs, cut back industrial emissions, and enhance home manufacturing of essential clear vitality merchandise and supplies.

Be taught extra at Qualifying Advanced Energy Project Credit (48C) Program.