Overview
Section 48E is a technology-neutral investment tax credit that replaces the technology-specific Section 48 credit for clean electricity. It provides credits for investment in facilities that generate clean electricity or store energy, regardless of the specific technology used. This approach ensures that emerging clean energy technologies can qualify for the same incentives as established sources.
Credit Structure
Base investment credit
Base rate for projects not meeting wage/apprenticeship requirements
With Prevailing Wage & Apprenticeship
Enhanced investment credit
Full credit with prevailing wage and apprenticeship requirements satisfied
Bonus Multipliers
Domestic Content Bonus
+10%Additional credit for projects meeting domestic content requirements for steel, iron, and manufactured products.
Energy Community Bonus
+10%Additional credit for projects located in designated energy communities.
Low-Income Community Bonus
+10-20%Additional credit for projects benefiting low-income communities.
Eligibility & Requirements
- 1Facility must generate electricity with zero or near-zero GHG emissions
- 2Energy storage property also qualifies
- 3Facility must be placed in service after December 31, 2024
- 4Must be located in the United States or U.S. territories
- 5Credit available until later of 2032 or when electricity sector emissions targets are met
Direct Pay Election
Tax-exempt organizations, state and local governments, tribal governments, and other qualified entities may elect direct payment for Section 48E credits.
Learn More About Direct Pay