U.S. flag An official website of the United States government

Official websites use .gov
A .gov website belongs to an official government organization in the United States.

Secure .gov websites use HTTPS
A lock () or https:// means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.

Tax Credits

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.
TitleTax Code LocationNew Or Modified ProvisionEligible Recipientshf:tax:statushf:tax:funding_typehf:tax:funding_sourcehf:tax:program_purposehf:tax:eligible_recipients
Advanced Energy Project Credit – 26 U.S. Code § 48C26 U.S. Code § 48CModified 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., , , n-atax-creditcritical-minerals industrial-facility manufacturing-facility manufacturing-retrofit
Advanced Manufacturing Production Credit – 26 U.S. Code § 45X26 U.S. Code § 45XNewn-atax-creditdomestic-manufacturers
Alternative Fuel Vehicle Refueling Property Credit – 26 U.S. Code § 30C26 U.S. Code § 30CExtended 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.n-atax-creditafv-refueling-property
Clean Electricity Investment Tax Credit – 26 U.S. Code § 48E26 U.S. Code § 48ENew, n-atax-creditenergy-storage zero-ghg-electricity-generators
Clean Electricity Production Tax Credit – 26 U.S. Code § 45Y26 U.S. Code § 45YNewn-atax-creditzero-ghg-electricity-generators
Clean Fuel Production Credit – 26 U.S. Code § 45Z26 U.S. Code § 45ZNewn-atax-creditclean-fuel-producers
Clean Vehicle Credit – 26 U.S. Code § 30D26 U.S. Code § 30DModified 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.n-atax-creditvehicle-consumers
Credit for Carbon Oxide Sequestration – 26 U.S. Code § 45Q26 U.S. Code § 45QExtended 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.n-atax-creditco2-emitting-facilities
Credit for Previously-Owned Clean Vehicles – 26 U.S. Code § 25E26 U.S. Code § 25ENewn-atax-creditvehicle-consumers
Credit for Qualified Commercial Clean Vehicles – 26 U.S. Code § 45W26 U.S. Code § 45WNewn-atax-creditvehicle-consumers
Energy Efficient Commercial Buildings Deduction – 26 U.S. Code § 179D26 U.S. Code § 179DModified and extended. Efficiency requirements updated., n-atax-creditbuilding-designers commercial-property-owners
Energy Efficient Home Improvement Credit – 26 U.S. Code § 25C26 U.S. Code § 25CModified 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.n-atax-credithomeowners-and-renters
Extension of Second-Generation Biofuel Incentives – 26 U.S. Code § 4026 U.S. Code § 40Extended from 12/31/2021 through 12/31/2024n-atax-creditclean-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.n-atax-creditclean-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.n-atax-creditclean-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, , n-atax-creditenergy-storage solar wind
Investment Tax Credit for Energy Property – 26 U.S. Code § 4826 U.S. Code § 48Modified 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., , , , , , , n-atax-creditbiogas chp energy-storage fuel-cell geothermal microgrid-controllers small-wind solar
New Energy Efficient Homes Credit – 26 U.S. Code § 45L26 U.S. Code § 45LModified and extended. The credit had previously expired at end of 2021.Retroactively extended with new rules effective for homes acquired after 2022.n-atax-credithomebuilders
Production Tax Credit for Electricity from Renewables – 26 U.S. Code § 4526 U.S. Code § 45Modified 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., , , , , , , , n-atax-creditbiomass geothermal hydrokinetic hydropower landfill-and-waste marine small-irrigation solar wind
Residential Clean Energy Credit – 26 U.S. Code § 25D26 U.S. Code § 25DModified and extended. Credit extended at 30% through 2032,with phasedown through 2034. Battery storage newly eligible in 2023; biomass fuel propertycredit eliminated.n-atax-credithomeowners-and-renters
Sustainable Aviation Fuel Credit – 26 U.S. Code § 40B26 U.S. Code § 40BNew, n-atax-creditaviation clean-fuel-producers
Zero-Emission Nuclear Power Production Credit – 26 U.S. Code § 45U26 U.S. Code § 45UNewn-atax-creditnuclear
Scroll to Top