Qualifying Advanced Energy Project Credit, Section 48C Inflation Reduction Act

The qualifying advanced energy project credit is an investment credit originally enacted by the American Recovery and Reinvestment Act of 2009. It was renewed and expanded by the Inflation Reduction Act of 2022 under section 48C(e). It incentivises clean energy manufacturing and recycling, industrial decarbonization, and critical materials processing, refining, and recycling. 

In April 2024, the Department of the Treasury and the Internal Revenue Service and Department of Energy announced tax credit allocations of up to USD 6 billion 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.

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