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26 U.S. Code § 45

IRA Statuatory Location:

13101

Tax Code Location:

26 U.S. Code § 45

New or Modified Provision:

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.

Eligible Recipients:

Facilities generating electricity from wind, biomass, geothermal, solar, small irrigation, landfill and trash, hydropower, and marine and hydrokinetic renewable energy.

Tribal Eligibility:

Yes

Funded by:

U.S. Department of Treasury

Description

Provides a tax credit for production of electricity from renewables
Direct Pay Eligibility:
Credit is increased by 5 times for projects meeting prevailing wage and registered apprenticeship requirements. Initial guidance on the labor provisions is available here. Credit is increased by up to 10 percentage points for projects meeting certain domestic content requirements for steel, iron, and manufactured products. Credit is increased by up to 10 percentage points if located in an energy community.
Transferability:
Yes
Stackability:
Credit reduced for tax-exempt bonds with similar rules as section 45(b)(3).
Energy Community Bonus:
Yes

Relevant Announcements

Related Resources

Additional information is available on the Resources page.

Key Details

Period of Availability
Projects beginning construction before 1/1/25.
Tax Mechanism:
Production tax credit
Base Credit Amount:
$0.03/kW, inflation adjusted
Bonus Credit Amount:
Credit is increased by 5 times for projects meeting prevailing wage and registered apprenticeship requirements. Initial guidance on the labor provisions is available here. Credit is increased by up to 10 percentage points for projects meeting certain domestic content requirements for steel, iron, and manufactured products. Credit is increased by up to 10 percentage points if located in an energy community.
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