What is Section 48C?
The Inflation Reduction Act (IRA) of 2022 signaled a push to incentivize and reward companies that pursue climate and green energy-related projects. As part of the Act which incorporates several green energy incentives, $10 billion have been allocated specifically to Section 48C (Qualifying Advanced Energy Project Allocation Program), which offers incentives for environmental actions things like:
- Clean energy property manufacturing & recycling
- Industrial Decarbonization
- Processing, refining & recycling materials critical to clean energy production
Who qualifies and what improvements are eligible?
Projects that include a qualified investment into re-equipping, expanding, or establishing manufacturing capabilities of green energy components and it’s supporting equipment.
Ongoing projects or projects placed into service after January 2023 may qualify.
Eligible industries may include:
- Manufacturing and/or Industrial companies that have net zero carbon goals and are actively investing in green energy solutions for their facilities
- Automotive or Original Equipment Manufacturers of electric or hybrid vehicles
- Refineries or recycling facilities
- Energy Providers & Energy Solutions
- Energy Generation Manufacturers
These are not complete lists of eligible projects or industries. Please contact us for a free consultation with one of our experts to answer any questions and identify all opportunities.
Claiming Periods
The Department of Energy’s (DOE) Concept Paper submittal timeframe opens on May 22, 2024 and will close on June 21, 2024.
This round will include approximately $6 billion allocated to qualified projects.
48C Tax Deduction offers substantial benefits
- The base credit is 6% of the qualified investment, with the potential to earn up to 30% providing that the Prevailing Wage and Apprenticeship requirements are met.
- The credit is eligible to be transferred fully or partially to a 3rd party taxpayer.
- The credit has a modified three-year carryback and up to a 23-year carryforward period.
And more!
Maximize your Section 48C benefit by hiring an expert
We partner with your business and advisors to provide access to the maximum government incentives. Our team of experts take the time to understand your business in order to align your company to all available federal and state credits and/or grants. Our industry-based expertise and successful track record offer peace of mind knowing you have the highest chance of being approved and receiving the maximum benefit on investment possible.
Our process
Ayming’s process for claiming the 48C Tax Credit consists of 5 steps:
