The Qualifying Advanced Energy Project Tax Credit (48C) program was significantly expanded with a $10 billion investment by the Inflation Reduction Act of 2022. This crucial investment is implemented through a collaboration between the Department of Energy (DOE), the Treasury, and the Internal Revenue Service (IRS).
The program received nearly $42 billion in requested tax credits during the concept paper phase and $13.5 billion across 250 full applications. Project requests ranged in size from under $1 million to over $100 million, highlighting the scale of qualified investments in clean energy projects.
More than 100 projects across 35 states have received funding for domestic clean energy manufacturing projects (a greater than 40 percent award rate for full applications). Over 35 percent of the funding will support projects in historic energy communities—communities impacted by closed coal mines or coal plants. The funding was distributed across the following three key areas:
- Clean energy manufacturing and recycling – $2.7 billion / 67 percent
- Critical materials recycling, processing, and refining – $800 million / 20 percent
- Industrial decarbonization – $500 million / 13 percent
The McAllister & Quinn team is actively tracking award announcements and is anticipating another significant funding opportunity in the coming months. We are preparing for the next round of 48C tax credit allocations, with the concept paper submission expected this summer and the full application likely before the end of the year.
If you are interested in learning more about how we can support your application for these clean energy tax credits, please contact us here.