The Qualifying Advanced Energy Project Credit (48C) program aims to strengthen U.S. industrial competitiveness and clean energy supply chains. As the nation builds a net-zero economy, the 48C tax credit program aims to play a critical role to create high-quality jobs, reduce industrial emissions, and increase domestic production of critical clean energy products and materials. The Inflation Reduction Act provided $10 billion in new funding under § 48C(e), with at least $4 billion reserved for projects in certain energy communities with closed coal mines or retired coal-fired power plants, to allocate credits to projects in three categories: (1) Clean energy manufacturing and recycling, (2) greenhouse gas emission reduction, and (3) critical materials refining, processing, and recycling. This announcement for Round 1 of § 48C(e) makes available $4 billion for eligible projects, with approximately $1.6 billion reserved for projects in certain energy communities.

Eligible applications will be evaluated by DOE against technical review criteria reflecting four major priority measures for the program:

• Criterion 1: Commercial Viability
• Criterion 2: Greenhouse Gas Emissions Impacts
• Criterion 3: Strengthening U.S. Supply Chains and Domestic Manufacturing for a Net-Zero Economy
• Criterion 4: Workforce and Community Engagement

When evaluating the Strengthening U.S. Supply Chains and Domestic Manufacturing for a Net-Zero Economy criterion, DOE will take into consideration whether the project addresses the following energy supply chain and manufacturing priority areas. These priority areas have been identified based on analytical criteria including an assessment of current and anticipated supply chain gaps in areas eligible under § 48C(e). Round 1 Priority Areas:

• Clean Hydrogen: Manufacturing of electrolyzers, fuel cells, and associated components (including gas diffusion layers, bipolar plates, and power electronics).
• Electric Grid: Manufacturing of transformers, materials (including electrical steel, amorphous alloy), power electronics, and other grid components and equipment (including MVDC/HVDC converter station components and switchgears).
• Electric Heat Pumps: Manufacturing of air-source or ground-source heat pump components and infrastructure, particularly reversing valves, control circuits, compressors, and heat exchangers.
• Electric Vehicles: Manufacturing of power electronics (including semiconductors, modules, and circuits for EV motor traction drives, on-board EV chargers, DC/DC converters, and EV charging stations), permanent magnets, and battery components for use in electric vehicle motors.
• Nuclear Energy: Manufacturing of specialized components and equipment for nuclear power reactors or their fuels (including fabrication of fuels, and manufacturing of equipment for conversion, enrichment, and deconversion), for both existing reactors and new reactor deployments.
• Solar Energy: Polysilicon, wafer production facilities, ingot and wafer production tools, and solar glass production facilities.
• Sustainable Aviation Fuels: Manufacturing of equipment needed for low-carbon aviation fuel production (including feedstock handling equipment and pretreatment reactors).
• Wind Energy: Component production facilities and specialized steel production, particularly for offshore wind, such as monopile-grade steel and towers; recycling of wind components, particularly blades.

These priority areas apply to Round 1, and guidance for future rounds under § 48C(e) may include different priority areas.