On June 21, 2023, Treasury released the 2023 production tax credit (PTC) amounts for renewable energy generating facilities available under IRA section 13101. The tax credits vary based on the year in which the facility was placed into service and whether or not the facility meets prevailing wage and apprenticeship requirements as set out by the Inflation Reduction Act.
For facilities placed in service before Jan. 1, 2022, the credit for renewable electricity production for calendar year 2023 is 2.8 cents per kilowatt hour (kWh) on the sale of electricity produced from the qualified energy resources of wind, closed-loop biomass and geothermal energy, and it is 1.4 cents per kWh on the sale of electricity produced from the qualified energy resources of open-loop biomass, landfill gas, trash, qualified hydropower, and marine and hydrokinetic renewable energy.
For facilities placed in service after Dec. 31, 2021, the credit for renewable electricity production for calendar year 2023 is 0.55 cents per kWh on the sale of electricity produced from the qualified energy resources of wind, closed-loop biomass, geothermal energy and solar energy, and the credit is 0.3 cents per kWh on the sale of electricity produced from open-loop biomass, landfill gas, trash, qualified hydropower, and marine and hydrokinetic renewable energy. These amounts increase from 0.55 cents and 0.3 cents to 2.75 cents and 1.5 cents per kWh, respectively, if prevailing wage and apprenticeship requirements are satisfied.
For qualified hydropower and marine and hydrokinetic renewable energy facilities placed in service after Dec. 31, 2022, the credit for renewable electricity production for calendar year 2023 is 0.55 cents per kWh, or 2.75 cents if prevailing wage and apprenticeship requirements are satisfied.