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.

Clean Electricity Production Tax Credit – 26 U.S. Code § 45Y

IRA Statuatory Location:

13701

Tax Code Location:

26 U.S. Code § 45Y

New or Modified Provision:

New

Eligible Recipients:

Zero GHG electricity generators

Tribal Eligibility:

Yes

Funded by:

U.S. Department of Treasury

Description

Provides a technology-neutral tax credit for production of clean electricity. Replaces the production tax credit for electricity generated from renewable sources (extended in Section 13101 through 2024).
Direct Pay Eligibility:
Yes, for tax-exempt organizations; states; political subdivisions; the Tennessee Valley Authority; Indian Tribal governments; Alaska Native Corporations; and rural electricity co-ops.
Transferability:
Yes
Stackability:
Credit reduced for tax-exempt bonds with similar rules as section 45(b)(3). Cannot claim both the §48E ITC and the § 45Y PTC for the same facility.
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:
Production tax credit
Base Credit Amount:
$0.03 cents/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 10% for projects meeting certain domestic content requirements for steel, iron, and manufactured products. Credit is increased by 10% if located in an energy community.
Scroll to Top