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.

26 U.S. Code § 48(e), 26 U.S. Code § 48E(h)

IRA Statuatory Location:

13103, 13702(h)

Tax Code Location:

26 U.S. Code § 48(e), 26 U.S. Code § 48E(h)

New or Modified Provision:

New

Eligible Recipients:

Solar and wind facilities with a maximum net output of less than 5 MW, including associated energy storage technology.

Tribal Eligibility:

Yes, facilities on Indian land qualify for the 10 percentage point bonus credit.

Funded by:

U.S. Department of Treasury

Description

Provides an additional investment tax credit for small-scale solar and wind facilities in low-income communities.
Direct Pay Eligibility:
Credit is increased by 10 percentage points for facilities located in low-income communities or on Tribal land. Credit is increased by 20 percentage points for facilities that are part of certain federally subsidized housing programs or that offer at least 50 percent of the financial benefits of the electricity produced to low-income households. This bonus amount will require an application by the taxpayer, with a cumulative total of 1.8 GW of direct current capacity per year available for allocation.
Transferability:
Yes
Stackability:
No rules
Energy Community Bonus:
No

Relevant Announcements

Related Resources

Additional information is available on the Resources page.

Key Details

Period of Availability
48(e) begins in 2023 and ends when the 48E(h) Clean Electricity Investment Tax Credit becomes available in 2025 through 2032.
Tax Mechanism:
Allocated investment credit, capped at 1.8 GW per year. Unused capacity carries over to following year.
Base Credit Amount:
6% of qualified investment (basis of energy property)
Bonus Credit Amount:
Credit is increased by 10 percentage points for facilities located in low-income communities or on Tribal land. Credit is increased by 20 percentage points for facilities that are part of certain federally subsidized housing programs or that offer at least 50 percent of the financial benefits of the electricity produced to low-income households. This bonus amount will require an application by the taxpayer, with a cumulative total of 1.8 GW of direct current capacity per year available for allocation.
Scroll to Top