The Section 45X is designed to accelerate domestic clean energy production. It provides important tax credits to makers of solar, battery, critical minerals, and other renewable energy parts. This helps strengthen U.S. supply chains and lowers dependence on foreign imports.
Section 45X – Advanced Manufacturing Production Credit: What You Need to Know
Section 45X was created under the Inflation Reduction Act (IRA) of 2022. This law offers a tax credit for the production and sale of clean energy components in the U.S. This includes battery parts, inverters, and important minerals. The goal is to make domestic supply chains for clean energy stronger. We want to reduce reliance on foreign supplies. We also aim to encourage the production of important items like battery cells, solar modules, and critical minerals.
45X Tax Credit offers substantial benefits
- The credit amount varies widely depending on the eligible component produced
- In the first 5 years that the credit is claimed, taxpayers can elect direct pay regardless of being tax-exempt entities or not
- Credits are eligible to be transferred fully or partially to a 3rd party taxpayer
- Credits have a modified 3-year carry-back and up to a 23-year carry-forward period
Eligibility for 45X
Clean energy components that qualify for the 45X include wind, solar, and battery projects. This includes PV cells, PV wafers, solar modules, blades, nacelles, inverters, and battery cells and modules. These products must be made in the United States and sold to an unrelated third party, starting in 2023.
These are not complete lists of eligible projects or industries. To identify all opportunities, you may schedule a free consultation with one of our experts.
Eligibility for 45X
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Strict documentation and cost allocation requirements
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Risk of overlap with other IRA incentives (e.g. Section 48C)
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Phase-outs requiring careful production and sales timing
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New foreign entity restrictions (2025 legislation) that limit eligibility
At Ayming, we help clients handle these challenges. We reduce compliance risks and create a strategy to maximize their tax benefits.
How we can help
Navigating the 45X tax credit requires deep technical expertise and careful planning. Ayming USA partners with manufacturers to:
Identify eligible production and quantify credit value
Ensure compliance with evolving IRS and Treasury rules
Optimize use of direct pay vs. transferability
Coordinate 45X with other incentives such as 48C and 179D
Provide audit-ready documentation and risk management
Why choose Ayming?
Billion secured for our clients globally
Million secured in tax credits for our US clients in the past year
clients globally in all sizes and sectors
success rate on all claims submitted
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