IRS Tweaks 2026 Clean Power Tax Credit Inflation Factor
Published Date: 9/4/2026
Notice
Summary
The IRS just announced the 2026 inflation adjustment factor for the Clean Electricity Production Credit, which helps clean energy producers save money on their taxes. This means if you produce or sell clean electricity in 2026, your tax credit will be calculated using a new factor of 2.0570, boosting your savings. This update keeps the credit fair and valuable as prices change, so clean energy stays a smart choice!
Analyzed Economic Effects
3 provisions identified: 2 benefits, 0 costs, 1 mixed.
2026 Inflation Factor Published
If you produce electricity at a qualified facility, the inflation adjustment factor for 2026 is 2.0570. The IRS uses this 2.0570 factor to adjust the per‑kilowatt‑hour clean electricity production credit for electricity sold, consumed, or stored in 2026.
2026 Credit Rates Set (¢/kWh)
If you produce electricity in 2026, the per‑kilowatt‑hour credit is 0.6 cents ($0.006) for the base rate and 3.1 cents ($0.031) for the alternative rate. The alternative 3.1¢ rate applies to qualified facilities with maximum net output under 1 megawatt, facilities whose construction began prior to January 29, 2023, or facilities that satisfy the wage and apprenticeship requirements in section 45Y(g)(9) and (g)(10).
Rounding Rules for Adjusted Rates
When adjusted for inflation, the 0.3 cent base amount is rounded to the nearest 0.05 cent and the 1.5 cent alternative amount is rounded to the nearest 0.1 cent. These rounding rules apply when computing the adjusted per‑kWh amounts for calendar years after 2024, including 2026.
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