Clean Electricity Investment Tax Credit 48/48E
48 for projects placed in service before 2025 or 48E for projects placed in service in 2025 or thereafter
What qualifies
A tax credit for the investment costs of installing eligible energy or electricity equipment.
For projects beginning before January 1, 2025, eligible energy investments can include wind, solar, geothermal, clean hydrogen, marine and hydrokinetic, biogas, microgrid controllers, fuel cell, interconnection property, and energy storage. For projects beginning after January 1, 2025, the tax credit is technology-neutral and eligible facilities are defined as investment in projects for the generation of zero emissions electricity.
Incentive value
Base credit is 6% of qualified investments.
- Credit is increased by 5 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 here.
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.
Who is eligible
Builders of clean electricity and energy storage facilities, including tax-exempt organizations.
When the credit is available
Facilities placed in service after December 31, 2024 through 2032 or when U.S. greenhouse gas emissions from electricity are 25% of 2022 emissions or lower.
How to claim the credit
Additional guidance may come on applying for 2025 tax credits.
See more information on this tax credit here.
Disclaimer: None of the information presented on this website should be considered official legal or financial advice. Please contact a licensed tax professional for additional information.