New Treasury Guidance to Drive Investment in Clean Energy Manufacturing in Hard-Hit Coal Communities
As part of the Biden-Harris Administration’s Investing in America agenda, the U.S. Department of the Treasury, the U.S. Department of Energy, and the Internal Revenue Service (IRS) released additional information on the expanded Qualifying Advanced Energy Project Credit under section 48C of the Internal Revenue Code. Today, Treasury and the IRS released new guidance that provides additional information about the application process and technical guidance for the program. Additionally, the Department of Energy formally launched the program’s landing page.
The Inflation Reduction Act provided $10 billion in new funding for the Qualifying Advanced Energy Project Credit program, aiming to strengthen U.S. industrial competitiveness and clean energy supply chains. Specifically, the tax incentive will be allocated for qualifying projects in the three following areas:
- Clean Energy Manufacturing and Recycling
- Greenhouse Gas Emission Reduction
- Critical Materials Processing, Refining, and Recycling
The program’s initial funding round will include up to $4 billion, with about $1.6 billion reserved for projects in coal communities. Of the total $10 billion in tax credits to be allocated, at least $4 billion must go to qualifying projects in communities that have been directly impacted by the closure of a coal mine or coal-fired power plant. These communities have the existing infrastructure, resources, and know-how to play a leading role in America’s clean energy economy. Entrepreneurs and businesses in these communities can take advantage of the public investment provided by the expanded Qualifying Advanced Energy Project Credit to jumpstart the process towards building this future.
Starting today, taxpayers can download all necessary application materials by visiting the Department of Energy’s 48C eXCHANGE portal. Taxpayers must submit a concept paper for consideration for a section 48C tax credit allocation, and the eXCHANGE portal will open for user registration and submissions no later than June 30th. The final deadline for concept paper submissions will be July 31st. Allocation decisions for the Qualifying Advanced Energy Project Credit program will be determined no later than March 31, 2024.
Today’s announcement underscores the Biden-Harris Administration’s commitment to driving historic investments designed to improve energy security and promote economic prosperity, especially in communities that have historically depended on the energy sector for employment and disproportionately borne the brunt of fossil energy pollution. We encourage you to learn more about the Biden-Harris Administration’s Investing in America agenda and our commitment to building America’s clean energy future.
