The Treasury Department and the Internal Revenue Service (IRS) announced $6 billion in tax credits for the second round of the Inflation Reduction Act’s Section 48C Qualifying Energy Project Tax Credit for projects in 30 states.
The 48C program is a competitive funding program and companies have the opportunity to apply for infrastructure project funding in the form of an investment tax credit for projects that: (1) expand U.S. clean energy manufacturing and recycling capacity ($3.8 billion in available tax credits); (2) expand U.S. critical minerals processing and refining capacity ($1.5 billion in available tax credits); and (3) drive process efficiency and reduce greenhouse gas emissions at U.S. industrial facilities ($700 million in available tax credits). All projects selected in Round 2 must meet SWACCA-supported prevailing wage and apprenticeship requirements to receive an investment tax credit, and the agencies will publish the names of all organizations with certified projects and the amount of that allocation after projects are certified.