Qualifying Advanced Energy Project Credit, Section 48C Inflation Reduction Act

The qualifying advanced energy project credit is an investment credit originally enacted by the American Recovery and Reinvestment Act of 2009. It was renewed and expanded by the Inflation Reduction Act of 2022 under section 48C(e). It incentivises clean energy manufacturing and recycling, industrial decarbonisation, and critical materials processing, refining and recycling. 

In March 2024, the Department of the Treasury, the Internal Revenue Service (IRS), and Department of Energy announced 48C tax credit allocations of approximately USD 4 billion. An additional USD 6 billion in 48C tax credit allocations was announced in January 2025.

As of July 2025, the programme was amended by the One Big Beautiful Bill Act such that if an IRS project certification is revoked because the project was not placed into service within two years of certification, the amount of the credit cannot be re-issued to a new project.

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