The U.S. Department of Treasury, the Internal Revenue Service (IRS), and the U.S. Department of Energy (DOE) announced this week that they received over 800 concept papers seeking nearly $40 billion in tax credits for Round 2 of the Qualifying Advanced Energy Project Tax Credit (48C) Program. These proposals represent $200 billion in total project investments.
Of the nearly $40 billion, approximately $10.3 billion is from projects in designated energy communities census tracts.
The IRS and DOE notified applicants on the 48C Portal that applications are now open, encouraging them to apply for the next stage of evaluation to determine which projects will receive a tax credit.
The IRS encouraged more than 450 projects across 46 states and the District of Columbia with over $22.5 billion in tax credits requested. Roughly $4.8 billion of these tax credits are allocated to historic energy communities. The encouraged projects span businesses and non-profits of various sizes, all required to meet prevailing wage and apprenticeship requirements to qualify for a 30% investment tax credit.
There is up to $6 billion in tax credit allocations for the second round of the 48C(e) program, including approximately $2.5 billion for projects located in designated energy communities.
Applicants who submitted a concept paper may now submit a full application on the 48C Portal by Friday, Oct. 18 at 11:59 pm Eastern time using templates available on the portal.
DOE, IRS, and UST will host a webinar for applicants on Monday, Sept. 16. The registration link will be available on the 48C landing page.
The 48C Program, funded by the Inflation Reduction Act, aims to accelerate domestic clean energy manufacturing and reduce greenhouse gas emissions at industrial facilities. DOE’s Office of Manufacturing & Energy Supply Chains manages this program on behalf of the Treasury Department and IRS. At least $4 billion of the total $10 billion will be allocated for projects in designated § 48C energy communities — areas with closed coal mines or coal plants as defined in Appendix C of IRS Notice 2024-36.
Learn more about the Qualifying Advanced Energy Project Credit (48C) and its program details.
