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 § 48E

IRA Statuatory Location:

13702

Tax Code Location:

26 U.S. Code § 48E

New or Modified Provision:

New

Eligible Recipients:

Facilities that generate electricity with a greenhouse gas emissions rate that is not greater than zero and qualified energy storage technologies.

Tribal Eligibility:

Yes

Funded by:

U.S. Department of Treasury

Description

Provides a technology-neutral tax credit for investment in facilities that generate clean electricity. Replaces the investment tax credit for facilities generating electricity from renewable sources (extended in Section 13202 through 2024).
Direct Pay Eligibility:
Credit is increased by 5 times for facilities 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 facilities 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
Facilities placed in service after 12/31/24. Phase-out starts the later of (a) 2032 or (b) when U.S. greenhouse gas emissions from electricity are 25% of 2022 emissions or lower.
Tax Mechanism:
Investment tax credit
Base Credit Amount:
6% of qualified investment (basis)
Bonus Credit Amount:
Credit is increased by 5 times for facilities 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 facilities 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.
Scroll to Top