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There are several tax credits available through the Inflation Reduction Act that benefit energy communities. These tax credits will help spur clean energy technology manufacturing and deployment across the country. In some cases, this will bring economic opportunities and job growth to energy communities.
Tax credits are reviewed and updated weekly using publicly available information. Tax credit details and open/close dates listed in tax credit profiles are subject to change by the agencies.
| Title | Tax Code Location | New Or Modified Provision | Eligible Recipients | hf:tax:status | hf:tax:funding_type | hf:tax:funding_source | hf:tax:program_purpose | hf:tax:eligible_recipients |
|---|---|---|---|---|---|---|---|---|
| Advanced Energy Project Credit – 26 U.S. Code § 48C | 26 U.S. Code § 48C | Modified and extended. 48C had been enacted in 2009 but was fully allocated after the 2nd allocation round in 2013. The Inflation Reduction Act provides $10 billion of allocations, directs a minimum share to energy communities, and expands eligibility to new types of projects. | Critical Minerals, Industrial Facility, Manufacturing Facility, Manufacturing Retrofit | n-a | tax-credit | critical-minerals industrial-facility manufacturing-facility manufacturing-retrofit | ||
| Advanced Manufacturing Production Credit – 26 U.S. Code § 45X | 26 U.S. Code § 45X | New | Domestic Manufacturers | n-a | tax-credit | domestic-manufacturers | ||
| Alternative Fuel Vehicle Refueling Property Credit – 26 U.S. Code § 30C | 26 U.S. Code § 30C | Extended and modified to include prevailing wage and registered apprenticeship requirements for businesses claiming the credit. Adds bidirectional charging equipment, charging equipment for 2- and 3-wheel electric vehicles. Limited to low-income and non-urban areas. | AFV Refueling Property | n-a | tax-credit | afv-refueling-property | ||
| Clean Electricity Investment Tax Credit – 26 U.S. Code § 48E | 26 U.S. Code § 48E | New | Energy Storage, Zero GHG Electricity Generators | n-a | tax-credit | energy-storage zero-ghg-electricity-generators | ||
| Clean Electricity Production Tax Credit – 26 U.S. Code § 45Y | 26 U.S. Code § 45Y | New | Zero GHG Electricity Generators | n-a | tax-credit | zero-ghg-electricity-generators | ||
| Clean Fuel Production Credit – 26 U.S. Code § 45Z | 26 U.S. Code § 45Z | New | Clean Fuel Producers | n-a | tax-credit | clean-fuel-producers | ||
| Clean Vehicle Credit – 26 U.S. Code § 30D | 26 U.S. Code § 30D | Modified and extended. Credit extended with new rules pertaining to final assembly in the United States, critical minerals/battery components, and foreign entities of concern. Per manufacturer limit is lifted. | Vehicle Consumers | n-a | tax-credit | vehicle-consumers | ||
| Credit for Carbon Oxide Sequestration – 26 U.S. Code § 45Q | 26 U.S. Code § 45Q | Extended and modified, tying the credit amounts to meetingprevailing wage and registered apprenticeship requirements, providing an enhanced credit fordirect air capture (DAC), and lowering the carbon capture threshold requirements at facilities. | CO2 Emitting Facilities | n-a | tax-credit | co2-emitting-facilities | ||
| Credit for Previously-Owned Clean Vehicles – 26 U.S. Code § 25E | 26 U.S. Code § 25E | New | Vehicle Consumers | n-a | tax-credit | vehicle-consumers | ||
| Credit for Qualified Commercial Clean Vehicles – 26 U.S. Code § 45W | 26 U.S. Code § 45W | New | Vehicle Consumers | n-a | tax-credit | vehicle-consumers | ||
| Energy Efficient Commercial Buildings Deduction – 26 U.S. Code § 179D | 26 U.S. Code § 179D | Modified and extended. Efficiency requirements updated. | Building Designers, Commercial Property Owners | n-a | tax-credit | building-designers commercial-property-owners | ||
| Energy Efficient Home Improvement Credit – 26 U.S. Code § 25C | 26 U.S. Code § 25C | Modified and extended. Credit rate increased from 10% to 30%. Eligibility and standards are modified. $500/per taxpayer lifetime limit eliminated and replaced with increased annual limits. | Homeowners and Renters | n-a | tax-credit | homeowners-and-renters | ||
| Extension of Second-Generation Biofuel Incentives – 26 U.S. Code § 40 | 26 U.S. Code § 40 | Extended from 12/31/2021 through 12/31/2024 | Clean Fuel Producers | n-a | tax-credit | clean-fuel-producers | ||
| Extension of Tax Credit for Alternative Fuels – 26 U.S. Code § 6426(d), 26 U.S. Code § 6426(e), 26 U.S. Code § 6427€ | 26 U.S. Code § 6426(d), 26 U.S. Code § 6426(e), 26 U.S. Code § 6427 | Extended from 12/31/2021 through 12/31/2024. | Clean Fuel Producers | n-a | tax-credit | clean-fuel-producers | ||
| Extension of Tax Credits for Biodiesel and Renewable Diesel – 26 U.S. Code § 40A, 26 U.S. Code § 6426(c), 26 U.S. Code § 6427€ | 26 U.S. Code § 40A, 26 U.S. Code § 6426(c), 26 U.S. Code § 6427 | Extended from 12/31/2022 through 12/31/2024. | Clean Fuel Producers | n-a | tax-credit | clean-fuel-producers | ||
| Increase in Energy Credit for Solar and Wind Facilities Placed in Service in Connection with Low-Income Communities – 26 U.S. Code § 48(e), 26 U.S. Code § 48E(h) | 26 U.S. Code § 48(e), 26 U.S. Code § 48E(h) | New | Energy Storage, Solar, Wind | n-a | tax-credit | energy-storage solar wind | ||
| Investment Tax Credit for Energy Property – 26 U.S. Code § 48 | 26 U.S. Code § 48 | Modified and extended to include standalone energy storage with capacity of at least 5 kWh, biogas, microgrid controllers (20MW or less), electrochromic glass, and interconnection property for small projects (5MW or less). Value of the credit tied to prevailing wage and registered apprenticeship requirements. | Biogas, CHP, Energy Storage, Fuel Cell, Geothermal, Microgrid Controllers, Small Wind, Solar | n-a | tax-credit | biogas chp energy-storage fuel-cell geothermal microgrid-controllers small-wind solar | ||
| New Energy Efficient Homes Credit – 26 U.S. Code § 45L | 26 U.S. Code § 45L | Modified and extended. The credit had previously expired at end of 2021.Retroactively extended with new rules effective for homes acquired after 2022. | Homebuilders | n-a | tax-credit | homebuilders | ||
| Production Tax Credit for Electricity from Renewables – 26 U.S. Code § 45 | 26 U.S. Code § 45 | Modified and extended. Extended for projects beinning construction before 1/1/25. Modified to tie the value of the credit to meeting prevailing wage and registered apprenticeship requirements. | Biomass, Geothermal, Hydrokinetic, Hydropower, Landfill and Waste, Marine, Small Irrigation, Solar, Wind | n-a | tax-credit | biomass geothermal hydrokinetic hydropower landfill-and-waste marine small-irrigation solar wind | ||
| Residential Clean Energy Credit – 26 U.S. Code § 25D | 26 U.S. Code § 25D | Modified and extended. Credit extended at 30% through 2032,with phasedown through 2034. Battery storage newly eligible in 2023; biomass fuel propertycredit eliminated. | Homeowners and Renters | n-a | tax-credit | homeowners-and-renters | ||
| Sustainable Aviation Fuel Credit – 26 U.S. Code § 40B | 26 U.S. Code § 40B | New | Aviation, Clean Fuel Producers | n-a | tax-credit | aviation clean-fuel-producers | ||
| Zero-Emission Nuclear Power Production Credit – 26 U.S. Code § 45U | 26 U.S. Code § 45U | New | Nuclear | n-a | tax-credit | nuclear |