Overview
Section 45X provides production tax credits for the domestic manufacturing of clean energy components. This credit is designed to rebuild and strengthen domestic clean energy supply chains by incentivizing U.S.-based manufacturing of solar cells, wind components, battery cells, and critical minerals processing.
Credit Structure
Credit varies by component
Different credit amounts apply to different components
With Prevailing Wage & Apprenticeship
No enhanced rate
Section 45X does not have prevailing wage/apprenticeship bonus structure
Bonus Multipliers
Solar Cells
+$0.04/WdcCredit per watt of capacity for photovoltaic cells
Solar Modules
+$0.07/WdcCredit per watt of capacity for photovoltaic modules
Battery Cells
+$35/kWhCredit per kilowatt-hour of capacity for battery cells
Battery Modules
+$10/kWhCredit per kilowatt-hour of capacity for battery modules
Eligibility & Requirements
- 1Components must be produced in the United States
- 2Production must occur after December 31, 2022
- 3Components must be sold to unrelated persons
- 4Must meet component-specific requirements
- 5Critical minerals must be extracted, processed, or recycled in the U.S.
Direct Pay Election
Section 45X credits are transferable and may be elected for direct pay by tax-exempt entities and certain other qualified organizations.
Learn More About Direct Pay