08/29/2024 | Press release | Distributed by Public on 08/29/2024 14:15
IR-2024-228, Aug. 29, 2024
WASHINGTON - The U.S. Department of Treasury, the Internal Revenue Service (IRS) and the U.S. Department of Energy (DOE) announced today that they received over 800 concept papers - project proposals - seeking a total of nearly $40 billion in tax credits, representing $200 billion in total project investments, for Round 2 of the Qualifying Advanced Energy Project Tax Credit (48C) Program.
Of the nearly $40 billion, approximately $10.3 billion is from projects in designated energy communities census tracts.
Today, the IRS and DOE notified applicants on the 48C Portal that applications are now open and after initial review were encouraged 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 the $22.5 billion in tax credits encouraged are in historic energy communities. The encouraged projects span large, medium and small businesses and non-profits, all of which must meet prevailing wage and apprenticeship requirements to receive a 30% investment tax credit.
There is up to $6 billion in tax credit allocations for the second round for the 48C(e) program, including approximately $2.5 billion for projects located in 48C(e) designated energy communities.
Applicants who submitted a concept paper, whether they received an encourage or discourage letter, may now submit a full application on the 48C Portal. Applications are due by Friday, Oct. 18 11:59 pm Eastern time. Applicants are encouraged to use the application templates available on the 48C Portal.
DOE, IRS and UST will host a webinar for applicants on Monday, Sept. 16. The webinar registration link will be made available on the 48C landing page.
The 48C Program, funded by the Inflation Reduction Act, is designed to accelerate domestic clean energy manufacturing and reduce greenhouse gas emissions at industrial facilities. DOE is partnering with the Treasury Department and the IRS to implement the Qualifying Advanced Energy Project Tax Credit (48C).
DOE's Office of Manufacturing & Energy Supply Chains (MESC) manages the 48C Program on behalf of the Treasury Department and the IRS. At least $4 billion of the total $10 billion will be allocated for projects in designated ยง 48C energy communities - communities 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 the Qualifying Advanced Energy Project Credit (48C) Program.