Today, the Department of the Treasury issued a Notice of Proposed Rulemaking (NPRM) proposing rules for claiming the § 45X Advanced Manufacturing Production Tax Credit (PTC)—an incentive created by the Inflation Reduction Act (IRA).
The Advanced Manufacturing PTC strengthens clean energy manufacturing by providing tax credits for manufacturers of clean energy components produced in the United States and sold in or after 2023. For components other than critical minerals, the credit begins to phase out in 2030, and is no longer available after 2032. This incentive supports the build-out of America’s clean energy manufacturing base, creating good-paying American jobs and promoting energy security while also reducing carbon emissions.
Among other items, the NPRM:
- Provides clarifying definitions and confirms credit amounts for eligible components, including solar energy components, wind energy components, inverters, qualifying battery components, and applicable critical minerals.
- Defines key terms to incentivize production in the United States and clarify the circumstances under which taxpayers can claim the credit.
- Includes important safeguards to prevent potential fraud, waste or abuse.
By providing additional certainty, these rules will enable innovators and manufacturers to continue to make long-term commitments to American research, design, and manufacturing of these critical technologies and build on the Biden-Harris Administration’s agenda. Because of the President’s leadership, workers on factory floors across the country are manufacturing more and more of the nuts and bolts we need to build the new clean energy economy.
Since President Biden signed the Inflation Reduction Act into law, clean energy manufacturing investments have been flowing into communities that have historically been hollowed out and left behind—economically disadvantaged counties with below average wages, household incomes, employment rates, and college graduation rates—following through on President Biden’s commitment to an equitable and just clean energy transition. Of clean energy manufacturing dollars announced since the passage of the IRA, 76% have gone to projects in counties with below-average weekly wages, 66% to projects in counties with below-average college graduation rates, 54% to projects in counties with below-average employment rates, and 69% to projects in counties with below-average median household incomes. These investments are having transformative and positive impacts on communities across America.
Under President Biden, companies have announced more than $140 billion for the manufacturing of clean energy technologies, electric vehicles, and batteries. The new guidance for the § 45X Advanced Manufacturing PTC will further accelerate these investments and bolster clean energy deployment, energy security, and American innovation and advanced manufacturing projects.
To learn more about how Bidenomics and the Biden-Harris Administration are driving historic clean energy investments, creating new good-paying jobs, and strengthening America’s energy security, visit www.invest.gov.