Section 13502 of the IRA inserts a new section 45X into the IRC, providing a tax credit for U.S.-made wind, solar, and battery power components produced and sold after December 31, 2022, known as the Advanced Manufacturing Production Credit.
To qualify for the credit, an eligible component must be produced and sold in the trade or business of the taxpayer. An eligible component is defined as any solar energy component, any wind energy component, an inverter, any qualifying battery, and any applicable critical mineral.
The applicable critical minerals include aluminum, antimony, barite, beryllium, cerium, cesium, chromium, cobalt, dysprosium, europium, fluorspar, gadolinium, germanium, graphite, indium, lithium, manganese, neodymium, nickel, niobium, tellurium, tin, tungsten, vanadium, and yttrium, among others.
The credit ranges from $0.25 to $45, depending on the type of eligible component, cost of production, and capacity factors.
This credit shall apply annually to eligible components produced and sold after December 31, 2022. After December 31, 2029, the credit shall be multiplied by phase-out percentages, specifically, 75% for 2030, 50% for 2031, 25% for 2032, and 0% for 2033. The phase-out percentages will not apply to applicable critical minerals.
Eligible Entities:
Current Status:
Section 70514 of the One Big Beautiful Bill Act of 2025 (Public Law 119-21) restricts the availability of the section 45X advanced manufacturing production credit (IRA section 13502). Section 70514 increases domestic content requirements, applies “prohibited foreign entity” restrictions and phases out the availability of the credit for wind energy by December 31, 2027. Section 70514 also designates metallurgical coal a “critical mineral” and sets phaseout percentages for all other critical minerals, excluding metallurgical coal.
Trump Administration Actions:
- Congress Passes Budget Bill, Rescinding Funds and Repealing IRA Programs and Tax Credits [07/03/2025]
- Senate Parliamentarian Advises Several Provisions in Republicans’ “One Big, Beautiful Bill” Are Not Permissible, Subject to Byrd Rule [06/19/2025]
- Senate Finance Committee Releases Budget Reconciliation Draft Text [06/16/2025]
- OMB Orders Temporary Pause on Financial Assistance Programs, Later Rescinded [01/27/2025]
- OMB Clarifies Scope of the Order to Halt IRA Spending [01/21/2025]
- Trump Issues Executive Order to Halt All IRA Funding Disbursements [01/20/2025]
Implementation Status at End of Biden Administration:
Biden Administration Actions:
Program Stakes:
Congress’s Joint Committee on Taxation projects taxpayers to claim $87.3 billion in Advanced Manufacturing Production credits by 2028.