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26 U.S. Code § 48

IRA Statuatory Location:

13102

Tax Code Location:

26 U.S. Code § 48

New or Modified Provision:

Modified and extended to include standalone energy storage with capacity of at least 5 kWh, biogas, microgrid controllers (20MW or less), and interconnection property for small projects (5MW or less). Value of the credit tied to prevailing wage and registered apprenticeship requirements.

Eligible Recipients:

Fuel cell, solar, geothermal, small wind, energy storage, biogas, microgrid controllers, and combined heat and power properties.

Tribal Eligibility:

Yes

Funded by:

U.S. Department of Treasury

Description

Provides a tax credit for investment in renewable energy projects.
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. For geothermal heat property, the base investment tax credit is 6% for the first 10 years, scaling down to 5.2% in 2033 and 4.4% in 2034.
Tax Mechanism:
Investment tax credit
Base Credit Amount:
6% of qualified investment (basis of energy property)
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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