Section 13102 of the IRA extends and expands the investment tax credit for qualifying energy facilities in section 48 of the IRC. The investment tax credit was previously scheduled to phase out between 2019 and 2023. Section 13102 of the IRA provides that projects that begin construction prior to January 1, 2025 (or January 1, 2035 for geothermal projects) and are placed in service after 2021 will be eligible for the full investment tax credit of 30%. Section 13102 of the IRA also expands the range of property that qualifies for the credit to include energy storage, microgrid controllers, biomass, dynamic glass, and linear generators.
The IRA also provides that the amount of the investment tax credit may be increased by 10 or 30 percent if certain wage and apprenticeship requirements are met.
The Treasury Department is required to issue “regulations or other guidance” to implement the expanded investment tax credit program.
For facilities beginning construction after 2024, the new section 48E clean electricity investment tax credit created by IRA section 13702 provides a continued investment tax credit.
Eligible Entities:
Agency Actions:
- Treasury Issues Proposed Rule to Provide Offshore Wind and Battery Storage Developers Investment Certainty
- Treasury Issues Proposed Rule on Clean Energy Apprenticeship and Prevailing Wage Requirements
- Treasury Releases Updated Guidance on Energy Community Bonus Credit
- Treasury Releases Guidance on Domestic Content Bonus for Clean Energy Investment and Production Credits
- Treasury Issues Guidance on Energy Community Bonus Credit
- Treasury Issues Initial Guidance on Prevailing Wage and Apprenticeship Requirements
- Treasury Requests Comments on Five Clean Energy Tax Credit Programs
- Treasury Requests Comments on Prevailing Wage, Apprenticeship, Domestic Content, and Energy Community Requirements