Title 26 — Internal Revenue CodeRelease 119-73
§48C Qualifying advanced energy project credit
Title 26 › Subtitle Subtitle A— - Income Taxes › Chapter CHAPTER 1— - NORMAL TAXES AND SURTAXES › Subchapter Subchapter A— - Determination of Tax Liability › Part PART IV— - CREDITS AGAINST TAX › Subpart Subpart E— - Rules for Computing Investment Credit › § 48C
Summary
Gives a tax credit equal to 30 percent of the cost of eligible equipment a business puts into service for approved advanced energy manufacturing projects. A “qualifying advanced energy project” means a project that builds, re‑equips, expands, or recycles industrial or manufacturing facilities for things like solar, wind, geothermal, fuel cells, energy storage, grid equipment, carbon capture, low‑carbon or renewable fuels, energy efficiency technologies, electric or fuel‑cell vehicles and their charging or refueling infrastructure, certain heavy hybrid vehicles, critical materials processing, or other property that cuts greenhouse gas emissions. “Eligible property” means the tangible equipment (not building structures) that is necessary for those projects and that can be depreciated. The credit is based on the tax basis of that property placed in service. The Treasury Secretary, working with the Energy Secretary, must set up programs to certify projects. A first program may allocate up to $2,300,000,000 in credits and a later program may allocate up to $10,000,000,000 (with no more than $6,000,000,000 available for projects outside certain prioritized census tracts). The Secretary must create the program within 180 days. Applicants follow the Secretary’s rules, have limited windows to apply and to show they meet requirements (typically 1–2 years after acceptance), and must place certified projects in service within the time allowed (2 or 3 years depending on the program) or the certification is lost. For the $10 billion program, most allocations use a 6 percent credit unless the project meets prevailing wage and apprenticeship rules, in which case the full 30 percent applies. The Secretary will pick projects based on commercial viability, jobs, pollution reduction, innovation, cost, and speed, will publish who gets certifications and amounts, and the credit can’t be claimed for investments that already got certain other energy credits.
Full Legal Text
Title 26, §48C
Internal Revenue Code — Source: USLM XML via OLRC
(a)For purposes of section 46, the qualifying advanced energy project credit for any taxable year is an amount equal to 30 percent of the qualified investment for such taxable year with respect to any qualifying advanced energy project of the taxpayer.
(b)(1)For purposes of subsection (a), the qualified investment for any taxable year is the basis of eligible property placed in service by the taxpayer during such taxable year which is part of a qualifying advanced energy project.
(2)Rules similar to the rules of subsections (c)(4) and (d) of section 46 (as in effect on the day before the enactment of the Revenue Reconciliation Act of 1990) shall apply for purposes of this section.
(3)The amount which is treated as the qualified investment for all taxable years with respect to any qualifying advanced energy project shall not exceed the amount designated by the Secretary as eligible for the credit under this section.
(c)(1)(A)The term “qualifying advanced energy project” means a project, any portion of the qualified investment of which is certified by the Secretary under subsection (e) as eligible for a credit under this section—
(i)which re-equips, expands, or establishes an industrial or manufacturing facility for the production or recycling of—
(I)property designed to be used to produce energy from the sun, water, wind, geothermal deposits (within the meaning of section 613(e)(2)), or other renewable resources,
(II)fuel cells, microturbines, or energy storage systems and components,
(III)electric grid modernization equipment or components,
(IV)property designed to capture, remove, use, or sequester carbon oxide emissions,
(V)equipment designed to refine, electrolyze, or blend any fuel, chemical, or product which is—
(aa)renewable, or
(bb)low-carbon and low-emission,
(VI)property designed to produce energy conservation technologies (including residential, commercial, and industrial applications),
(VII)light-, medium-, or heavy-duty electric or fuel cell vehicles, as well as—
(aa)technologies, components, or materials for such vehicles, and
(bb)associated charging or refueling infrastructure,
(VIII)hybrid vehicles with a gross vehicle weight rating of not less than 14,000 pounds, as well as technologies, components, or materials for such vehicles, or
(IX)other advanced energy property designed to reduce greenhouse gas emissions as may be determined by the Secretary,
(ii)which re-equips an industrial or manufacturing facility with equipment designed to reduce greenhouse gas emissions by at least 20 percent through the installation of—
(I)low- or zero-carbon process heat systems,
(II)carbon capture, transport, utilization and storage systems,
(III)energy efficiency and reduction in waste from industrial processes, or
(IV)any other industrial technology designed to reduce greenhouse gas emissions, as determined by the Secretary, or
(iii)which re-equips, expands, or establishes an industrial facility for the processing, refining, or recycling of critical materials (as defined in section 7002(a) of the Energy Act of 2020 (30 U.S.C. 1606(a)) 11 So in original. Probably should be followed by a closing parenthesis..
(B)Such term shall not include any portion of a project for the production of any property which is used in the refining or blending of any transportation fuel (other than renewable fuels).
(2)The term “eligible property” means any property—
(A)which is necessary for—
(i)the production or recycling of property described in clause (i) of paragraph (1)(A),
(ii)re-equipping an industrial or manufacturing facility described in clause (ii) of such paragraph, or
(iii)re-equipping, expanding, or establishing an industrial facility described in clause (iii) of such paragraph,
(B)which is—
(i)tangible personal property, or
(ii)other tangible property (not including a building or its structural components), but only if such property is used as an integral part of the qualified investment credit facility, and
(C)with respect to which depreciation (or amortization in lieu of depreciation) is allowable.
(d)(1)(A)Not later than 180 days after the date of enactment of this section, the Secretary, in consultation with the Secretary of Energy, shall establish a qualifying advanced energy project program to consider and award certifications for qualified investments eligible for credits under this section to qualifying advanced energy project sponsors.
(B)The total amount of credits that may be allocated under the program shall not exceed $2,300,000,000.
(2)(A)Each applicant for certification under this paragraph shall submit an application containing such information as the Secretary may require during the 2-year period beginning on the date the Secretary establishes the program under paragraph (1).
(B)Each applicant for certification shall have 1 year from the date of acceptance by the Secretary of the application during which to provide to the Secretary evidence that the requirements of the certification have been met.
(C)An applicant which receives a certification shall have 3 years from the date of issuance of the certification in order to place the project in service and if such project is not placed in service by that time period, then the certification shall no longer be valid.
(3)In determining which qualifying advanced energy projects to certify under this section, the Secretary—
(A)shall take into consideration only those projects where there is a reasonable expectation of commercial viability, and
(B)shall take into consideration which projects—
(i)will provide the greatest domestic job creation (both direct and indirect) during the credit period,
(ii)will provide the greatest net impact in avoiding or reducing air pollutants or anthropogenic emissions of greenhouse gases,
(iii)have the greatest potential for technological innovation and commercial deployment,
(iv)have the lowest levelized cost of generated or stored energy, or of measured reduction in energy consumption or greenhouse gas emission (based on costs of the full supply chain), and
(v)have the shortest project time from certification to completion.
(4)(A)Not later than 4 years after the date of enactment of this section, the Secretary shall review the credits allocated under this section as of such date.
(B)The Secretary may reallocate credits awarded under this section if the Secretary determines that—
(i)there is an insufficient quantity of qualifying applications for certification pending at the time of the review, or
(ii)any certification made pursuant to paragraph (2) has been revoked pursuant to paragraph (2)(B) because the project subject to the certification has been delayed as a result of third party opposition or litigation to the proposed project.
(C)If the Secretary determines that credits under this section are available for reallocation pursuant to the requirements set forth in paragraph (2), the Secretary is authorized to conduct an additional program for applications for certification.
(5)The Secretary shall, upon making a certification under this subsection, publicly disclose the identity of the applicant and the amount of the credit with respect to such applicant.
(e)(1)Not later than 180 days after the date of enactment of this subsection, the Secretary shall establish a program to consider and award certifications for qualified investments eligible for credits under this section to qualifying advanced energy project sponsors.
(2)The total amount of credits which may be allocated under the program established under paragraph (1) shall not exceed $10,000,000,000, of which not greater than $6,000,000,000 may be allocated to qualified investments which are not located within a census tract which—
(A)is described in clause (iii) of section 45(b)(11)(B), and
(B)prior to the date of enactment of this subsection, had no project which received a certification and allocation of credits under subsection (d).
(3)(A)Each applicant for certification under this subsection shall submit an application at such time and containing such information as the Secretary may require.
(B)Each applicant for certification shall have 2 years from the date of acceptance by the Secretary of the application during which to provide to the Secretary evidence that the requirements of the certification have been met.
(C)An applicant which receives a certification shall have 2 years from the date of issuance of the certification in order to place the project in service and to notify the Secretary that such project has been so placed in service, and if such project is not placed in service by that time period, then the certification shall no longer be valid. If any certification is revoked under this subparagraph, the amount of the limitation under paragraph (2) shall not be increased by the amount of the credit with respect to such revoked certification.
(D)In the case of an applicant which receives a certification, if the Secretary determines that the project has been placed in service at a location which is materially different than the location specified in the application for such project, the certification shall no longer be valid.
(4)(A)For purposes of allocations under this subsection, the amount of the credit determined under subsection (a) shall be determined by substituting “6 percent” for “30 percent”.
(B)In the case of any project which satisfies the requirements of paragraphs (5)(A) and (6), subparagraph (A) shall not apply.
(5)(A)The requirements described in this subparagraph with respect to a project are that the taxpayer shall ensure that any laborers and mechanics employed by the taxpayer or any contractor or subcontractor in the re-equipping, expansion, or establishment of a manufacturing facility shall be paid wages at rates not less than the prevailing rates for construction, alteration, or repair of a similar character in the locality in which such project is located as most recently determined by the Secretary of Labor, in accordance with subchapter IV of chapter 31 of title 40, United States Code.
(B)Rules similar to the rules of section 45(b)(7)(B) shall apply.
(6)Rules similar to the rules of section 45(b)(8) shall apply.
(7)The Secretary shall, upon making a certification under this subsection, publicly disclose the identity of the applicant and the amount of the credit with respect to such applicant.
(f)A credit shall not be allowed under this section for any qualified investment for which a credit is allowed under section 48, 48A, 48B, 48E, 45Q, or 45V.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
References in Text
Subsections (c)(4) and (d) of section 46 (as in effect on the day before the enactment of the Revenue Reconciliation Act of 1990), referred to in subsec. (b)(2), means section 46(c)(4) and (d) as in effect before enactment of Pub. L. 101–508, which amended section 46 generally. The date of enactment of this section, referred to in subsec. (d)(1)(A), (4)(A), is the date of enactment of Pub. L. 111–5, which was approved Feb. 17, 2009. The date of enactment of this subsection, referred to in subsec. (e)(1), (2)(B), is the date of enactment of Pub. L. 117–169, which was approved Aug. 16, 2022.
Amendments
2025—Subsec. (e)(3)(C). Pub. L. 119–21 substituted “shall not be increased” for “shall be increased”. 2022—Subsec. (c)(1)(A). Pub. L. 117–169, § 13501(b)(1), inserted “, any portion of the qualified investment of which is certified by the Secretary under subsection (e) as eligible for a credit under this section” after “means a project” in introductory provisions. Subsec. (c)(1)(A)(i). Pub. L. 117–169, § 13501(b)(2)(A), substituted “an industrial or manufacturing facility for the production or recycling of” for “a manufacturing facility for the production of” in introductory provisions. Subsec. (c)(1)(A)(i)(I). Pub. L. 117–169, § 13501(b)(2)(B), inserted “water,” after “sun,”. Subsec. (c)(1)(A)(i)(II). Pub. L. 117–169, § 13501(b)(2)(C), substituted “energy storage systems and components” for “an energy storage system for use with electric or hybrid-electric motor vehicles”. Subsec. (c)(1)(A)(i)(III). Pub. L. 117–169, § 13501(b)(2)(D), substituted “grid modernization equipment or components” for “grids to support the transmission of intermittent sources of renewable energy, including storage of such energy”. Subsec. (c)(1)(A)(i)(IV). Pub. L. 117–169, § 13501(b)(2)(E), substituted “, remove, use, or sequester carbon oxide emissions” for “and sequester carbon dioxide emissions”. Subsec. (c)(1)(A)(i)(V). Pub. L. 117–169, § 13501(b)(2)(F), added subcl. (V) and struck out former subcl. (V) which read as follows: “property designed to refine or blend renewable fuels or to produce energy conservation technologies (including energy-conserving lighting technologies and smart grid technologies),”. Subsec. (c)(1)(A)(i)(VI) to (IX). Pub. L. 117–169, § 13501(b)(2)(G)–(J), added subcls. (VI) to (VIII), redesignated former subcl. (VII) as (IX), struck out “and” at end of subcl. (IX), and struck out former subcl. (VI) which read as follows: “new qualified plug-in electric drive motor vehicles (as defined by section 30D) or components which are designed specifically for use with such vehicles, including electric motors, generators, and power control units, or”. Subsec. (c)(1)(A)(ii), (iii). Pub. L. 117–169, § 13501(b)(3), added cls. (ii) and (iii) and struck out former cl. (ii) which read as follows: “any portion of the qualified investment of which is certified by the Secretary under subsection (d) as eligible for a credit under this section.” Subsec. (c)(2)(A). Pub. L. 117–169, § 13501(c), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “which is necessary for the production of property described in paragraph (1)(A)(i),”. Subsec. (e). Pub. L. 117–169, § 13501(a), added subsec. (e). Former subsec. (e) redesignated (f). Subsec. (f). Pub. L. 117–169, § 13501(a), (d), redesignated subsec. (e) as (f) and substituted “48B, 48E, 45Q, or 45V” for “or 48B”. 2014—Subsec. (b)(3). Pub. L. 113–295, § 209(g), inserted “as the qualified investment” after “The amount which is treated”. Subsec. (c)(1)(A)(i)(VI). Pub. L. 113–295, § 221(a)(2)(C), struck out “, qualified plug-in electric vehicles (as defined by section 30(d)),” before “or components”.
Statutory Notes and Related Subsidiaries
Effective Date
of 2025 Amendment Pub. L. 119–21, title VII, § 70515(b),
July 4, 2025, 139 Stat. 276, provided that: “The amendment made by this section [amending this section] shall take effect on the date of enactment of this Act [
July 4, 2025].”
Effective Date
of 2022 Amendment Pub. L. 117–169, title I, § 13501(e), Aug. 16, 2022, 136 Stat. 1971, provided that: “The
Amendments
made by this section [amending this section] shall take effect on January 1, 2023.”
Effective Date
of 2014 AmendmentAmendment by section 209(g) of Pub. L. 113–295 effective as if included in the provisions of the American Recovery and Reinvestment Tax Act of 2009, Pub. L. 111–5, div. B, title I, to which such amendment relates, see section 209(k) of Pub. L. 113–295, set out as a note under section 24 of this title. Amendment by section 221(a)(2)(C) of Pub. L. 113–295 effective Dec. 19, 2014, subject to a
Savings Provision
, see section 221(b) of Pub. L. 113–295, set out as a note under section 1 of this title.
Effective Date
Section applicable to periods after Feb. 17, 2009, under rules similar to the rules of section 48(m) of this title as in effect on the day before Nov. 5, 1990, see section 1302(d) of Pub. L. 111–5, set out as an
Effective Date
of 2009 Amendment note under section 46 of this title.
Reference
Citations & Metadata
Citation
26 U.S.C. § 48C
Title 26 — Internal Revenue Code
Last Updated
Apr 6, 2026
Release point: 119-73