Qualifying Advanced Energy Project Credit (48C) Program

48C Updates

Round 2 Tax Credit Allocations Announced 

The Department of Treasury, Internal Revenue Service and DOE have announced $6 billion in tax credits(link is external) to build clean energy supply chains, drive investments, and lower costs in energy communities.

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Overview

The Qualifying Advanced Energy Project Credit (48C) was established by the American Recovery and Reinvestment Act of 2009 and 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).  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.  DOE’s Office of Manufacturing & Energy Supply Chains (MESC) manages the 48C(e) program on behalf of IRS and Treasury. 

On March 29, 2024, the IRS allocated approximately $4 billion of 48C credits for over 100 projects across 35 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(link is external) 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)). 

Concept papers and applications will be evaluated across multiple criteria and policy factors, including (1) commercial viability; (2) greenhouse gas emissions impacts; (3) strengthening U.S. supply chains and domestic manufacturing for a net-zero economy; and (4) workforce and community engagement. 

Approximately $2.5 billion of this second allocation round will be set aside for projects in designated 48C(e) energy communities, which includes communities with closed coal mines or coal plants (see Appendix C of IRS Notice 2024-36 for the list of designated census tracts).  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.

Timing

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(link is external) (Revised August 2024) is now available.

 

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:

Guidance

Frequently Asked Questions (FAQs) 

Additional Resources

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(link is external), and other helpful information. Additional help articles will continue to be added to the Applicant Portal.

Any questions or comments about registration and the concept paper and full application submission process can be submitted to the Department of Energy at 48CQuestions@hq.doe.gov.  Department of energy staff cannot provide tax advice.

Round 1 Tax Credit Allocations Announced

The Department of Treasury and DOE have announced $4 Billion in tax credits to build clean energy supply chains, drive investments, and lower costs in energy communities.