Deadline Approaching for Round Two of the Qualifying Advanced Energy Project Credit
The Internal Revenue Service and Department of Energy recently opened an application portal for companies with eligible investments in clean energy manufacturing to submit concept papers in a second round of selective tax credit allocations. Section 48C covers one of several clean energy initiatives made possible through the Inflation Reduction Act, and aims to improve the nation’s clean energy supply chains.
Up to $6 billion of funds are available in this round, including roughly $2.5 billion earmarked for certain energy communities. In the first round, $4 billion of funding was available and credit amounts applied for totaled almost $42 billion.
If approved, a federal tax credit of up to 30% of qualifying expenses is available.
The process begins with submitting a concept paper that demonstrates the commercial viability of specialized projects that outline impacts on greenhouse gas emissions and the overall community.
A few prioritized areas identified by the DOE include manufacturing investments in:
- Electric vehicle components
- Low carbon cement, iron, steel, or aluminum
- Solar, nuclear, and wind energy components
Important:
Concept papers must be submitted no later than Friday, June 21st at 5 p.m. to receive consideration.
Companies without tax liabilities can still monetize by exchanging awarded tax credits for cash to an unrelated party.
For assistance writing a competitive concept paper, contact Squire’s Tax Incentives and Credits Team at 801-225-6900 or sandradb@squire.com
Link to Portal: https://eco.energy.gov/48C/s/