Clean Electricity Investment Tax Credit 48/48E

A federal tax credit for investing in the installation of clean electricity equipment.

Facilities that install eligible clean energy or electricity equipment.

For projects beginning before January 1, 2025, eligible energy investments can include fuel cell, small wind, solar, geothermal, biogas, microgrid, controllers, and combined heat and power properties. For projects beginning after January 1, 2025, the tax credit is technology-neutral and eligible facilities are defined as facilities that generate electricity with a greenhouse gas emissions rate that is not greater than zero and qualified energy storage technologies.

Base credit is 6% of qualified investments.

• Credit is increased by five times for facilities meeting prevailing wage and apprenticeship requirements.
• Credit is increased by up to 10% for facilities meeting certain domestic content requirements for steel, iron, and manufactured products.
• Credit is increased by up to 10% if located in an energy community. See if your location is eligible for the credit increase of up to 10% for energy communities on the Energy Communities website.

You may transfer the credit by selling all or a portion of the tax credit to an unrelated taxpayer. Direct pay is available for tax-exempt organizations.

You may not combine the Clean Electricity Investment Tax Credit 48E and the Clean Electricity Production Tax Credit 45Y for the same facility.

Builders of clean electricity and energy storage facilities, including tax-exempt organizations.

Facilities placed in service after December 31, 2024, through 2032 or when US greenhouse gas emissions from electricity are 25% of 2022 emissions or lower.

Additional guidance may come on applying for 2025 tax credits.

Tax-exempt entities must follow the instructions for direct pay. Preregister with the IRS and submit annual tax paperwork, typically a Form 990-T for most entities that don’t normally file a tax return.

Organizations that wish to transfer their tax credits must pre-register with the IRS before the tax return is due and receive a registration number.

See more information about this tax credit on the Energy.gov website.