NUCLEAR
CARBON CAPTURE
ELECTRIC VEHICLES
WIND
STORAGE
SOLAR
RENEWABLE FUELS
HYDROGEN
RENEWABLE
NATURAL GAS
CLEAN
MANUFACTURING
Nuclear
Other Non-Federal Tax Credit Incentives Available
The Department of Energy has a few loan programs which nuclear facilities may be eligible for.
Click on any of the statutes below for details
GEOTHERMAL
§25E: Previously Owned Clean Vehicles
§30D
§25E
§40B
§40(b)(6)
§45
§45X
§45W
§45V
§45U
§45Q
§48E
§48D
§48
§45Z
§45Y
§40B: Sustainable Aviation Fuel Credit
§30D: Clean Vehicle Credit
§40(b)(6): 2nd Generation Biofuel Producer Credit
§45Y: Clean Electricity Production Credit
§45X: Advanced Manufacturing Production Credit
§45W: Credit for Qualified Commercial Clean Vehicles
§45V: Clean Hydrogen Production Credit
§45U: Zero-Emission Nuclear Power Production Credit
§45Q: Credit for Carbon Oxide Sequestration
§45: Renewable Electricity Production Credit
§48E: Clean Electricity Investment Credit
§45D: Advanced Manufacturing Investment Credit
§48: Energy Investment Credit
§45Z: Clean Fuel Production Credit
§25E
Available for buyers of certain previously-owned clean vehicles from a registered dealer.
CREDIT AMOUNT
Lesser of $4,000 or 30% of sales price. Car must be resold for the first time after December 31, 2022 for $25,000 or less.
DIRECT PAY: NO
…but buyer may be able to receive advanced payment of the credit amount from the dealer.
Previously Owned Clean Vehicles
*For vehicles purchased after December 31, 2023, and before December 31, 2032.
§30D
Available for buyers of new clean vehicles that meet certain requirements.
CREDIT AMOUNT
Up to $7,500 for qualifying vehicles. This credit amount can be applied toward the purchase price of the vehicle.
DIRECT PAY: NO
…but buyer may be able to receive advanced payment of the credit amount from the dealer.
TRANSFERABILITY: YES
For vehicles placed in service after Dec. 31, 2023, buyers can sell credit to dealer who sold vehicle for cash or down payment on or before the purchase date.
Clean Vehicle Credit
*For vehicles placed in service after January 1, 2024, and before December 31, 2032.
§40(b)(6)
Available for the production of second-generation biofuel.
CREDIT AMOUNT
$1.01/gallon of second-generation biofuel, with a reduction for second-generation biofuel that is alcohol.
DIRECT PAY: NO
TRANSFERABILITY: NO
Second Generation Biofuel Producer Credit
*The IRA extends this credit for production through December 31, 2024.
§45U
Incentives Available
External Link:
ADVANCED NUCLEAR ENERGY PROJECTS
Department of Energy
Zero-Emission Nuclear Power Production Credit
Clean Electricity Production Credit
§45Y
Energy Investment Credit
§48
Clean Electricity Investment Credit
§48E
Tax Credits Added or Modified under the Inflation Reduction Act
§40B
Available for the sale or use of sustainable aviation fuel that achieves at least a 50% reduction in lifecycle greenhouse gas (GHG) emissions as compared with petroleum-based jet fuel.
CREDIT AMOUNT
$1.25/gal. of sustainable aviation fuel.
DIRECT PAY:
NO
TRANSFERABILITY:
NO
Sustainable Aviation Fuel Credit
*Only available to the sale or use of sustainable aviation fuel before December 31, 2024.
BONUS CREDIT AMOUNT
$0.01/gal. for each % point by which the SAF lifecycle GHG emissions are reduced above 50% vs. petroleum-based jet fuel, up to $0.50/gal.
§45
Available for selling electricity to unrelated persons and produced from renewable sources.
BASE CREDIT
$0.003/kW, inflation-adjusted
$0.015/kW, if PWA reqs. are met
DIRECT PAY: YES
Only available to tax-exempts, including nonfederal gov'ts.
TRANSFERABILITY: YES
Taxable persons only.
Renewable Electricity Production Credit
*Projects need to be placed in service by December 31, 2024. Available for first 10 years of operations.
INCREASES
Domestic Content – 10%
Energy Community – 10%
§45Q
Available for sequestration coupled with permitted end uses in the U.S. Minimum volumes (in metric tons of CO2): 1,000 for DAC facilities; 18,750 for electricity-generating facilities (with carbon capture capacity of 75% of the baseline CO2 production); 12,500 for any other facility.
DIRECT PAY: YES
Available to all taxpayers during first five years of credit period.
TRANSFERABILITY: YES
Taxable persons only.
Credit for Carbon Oxide Sequestration
*Construction on facility needs to begin before Dec. 31, 2032. Available for 12 years.
REDUCTIONS
Up to 15% for tax-exempt bond financing
STACKABILITY
Cannot claim both ITC §48 and PTC §45 for the same project.
BASE CREDIT
$17/metric ton ($36/ton for DAC facilities) of qualified carbon oxide sequestered; $12/ton ($26/ton for DAC facilities) for qualified carbon oxide that is injected or enhanced for oil recovery or used. 5x listed amounts if PWA requirements are met.
§45U
Available for producing electricity at a zero-emission nuclear power facility.
BASE CREDIT
$0.003/kW, inflation-adjusted after 2024.
$0.015/kW, if PWA requirements are met for any alterations or repairs made.
STACKABILITY
Taxpayers cannot claim both §45J and §45U.
DIRECT PAY: YES
Only available to tax-exempts, including nonfederal gov'ts.
TRANSFERABILITY: YES
Taxable persons only.
Zero-Emission Nuclear Power Production Credit
*Available for electricity produced in tax years beginning 2024 – 2032.
§45v
Available for facilities producing low-emission hydrogen.
BASE CREDIT
$0.60/kg multiplied by the applicable percentage (from 20% –100% depending on the lifecycle greenhouse gas emissions), inflation-adjusted.
DIRECT PAY: YES
Available to all taxpayers during first five years of credit period.
TRANSFERABILITY: YES
Taxable persons only.
Clean Hydrogen Production Credit
*Available for clean hydrogen produced after Dec. 31, 2022.
Construction on facility must begin by Dec. 31, 2032. Available for first 10 years of operations.
$3/kg multiplied by the applicable percentage if the PWA requirements are met.
Hydrogen
Other Non-Federal Tax Credit Incentives Available
Click on any of the statutes below for details
Incentives Available
Clean Hydrogen Production Credit
§45V
Energy Investment Credit
§48
Blue Hydrogen: Clean hydrogen production credits are not allowed with respect to any qualified clean hydrogen produced at a facility which includes carbon capture equipment for which Section 45Q credits are allowed.
Green Hydrogen: The clean hydrogen production credit may be combined with the ITC or PTC if a clean energy electricity facility is placed in service after Dec. 31, 2024.
LCFS credits may be claimed.
The Department of Energy has loan programs available for financing hydrogen projects.
External Link:
CLEAN HYDROGEN PROJECTS Department of Energy
§45W
CREDIT AMOUNT
up to $40,000 for qualifying vehicles (max credit of $7,500 for vehicles less than 14,000 lbs.)
DIRECT PAY: YES
United States, their political subdivisions, United States possessions, agencies and instrumentalities of the foregoing, tax-exempt orgs (not cooperatives), and Tribal gov'ts only.
TRANSFERABILITY: NO
Credit for Qualified Commercial Clean Vehicles
*For vehicles purchased after January 1, 2024 and before December 31, 2032.
Available for buyers of commercial clean vehicles. Qualifying vehicles include passenger vehicles, buses, certain emergency service vehicles, and some mobile machinery.
§45X
Available for manufacturing solar, wind and battery components, inverters, and critical minerals in the United States and selling such components to an unrelated person.
BASE CREDIT
Varies on the component type.
DIRECT PAY: YES
Available to all taxpayers during first five years of credit period.
TRANSFERABILITY: YES
Taxable persons only.
Advanced Manufacturing Production Credit
*Available for components and minerals produced and sold in tax years 2023 – 2032. Phase down begins 2030.
STACKABILITY
Taxpayers cannot claim §45X for any facilities that receive the §48C credit.
§45Y
A technology-neutral credit that replaces §45 and is available for producing and selling clean electricity.
BASE CREDIT
$0.003/kW, inflation-adjusted
$0.015/kW, if PWA requirements are met.
DIRECT PAY: YES
Only available to tax-exempts, including nonfederal governments.
TRANSFERABILITY: YES
Taxable persons only.
Clean Electricity Production Credit
*Projects placed in service after Dec. 31, 2024, will be eligible. Phaseout of the credit be the later of 2032
or when US greenhouse gas emissions are 25% of 2022 emissions or lower. Credit is available for 10 years.
STACKABILITY
Taxpayers cannot claim both the ITC §48E and the PTC §45Y for the same project.
INCREASES
Domestic Content – 10%
Energy Community – 10%
REDUCTIONS
Up to 15% for tax-exempt bond financing.
§45Z
A technology-neutral credit for the production of clean transportation fuels in the United States. This includes sustainable aviation fuels (SAF).
CREDIT AMOUNT
$0.20/gallon ($0.35/gallon for SAF) multiplied by CO2 emissions factor.
DIRECT PAY: YES
Only available to tax-exempts, including nonfederal governments.
TRANSFERABILITY: YES
Taxable persons only.
Clean Fuel Production Credit
*Available after December 31, 2024.
$1.00/gallon ($1.75/gallon for SAF) multiplied by CO2 emissions factor if PWA requirements are met.
§48
Available for investment in renewable energy properties, clean hydrogen facilities (if elected), and qualified interconnection property.
BASE CREDIT
6% of qualified investment.
(30% if the PWA reqs. are met)
INCREASES
Domestic Content – 10%
Energy Community – 10%
10 – 20% for solar / wind facilities (max net output < 5MW) if allocated a §48(e) limitation and placed in service within 4 years.
REDUCTIONS
Up to 15% for tax-exempt bond financing
DIRECT PAY: YES
TRANSFERABILITY: YES
Energy Investment Credit
*Projects need to be placed in service by December 31, 2024.
For geothermal property projects, construction must begin before December 31, 2034.
§48E
A technology-neutral credit that replaces §48 and is available for investment in facilities generating electricity with a zero GHG emissions rate and qualified energy storage technology.
BASE CREDIT
6% of qualified investment.
30% of qualified investment if the PWA requirements are met.
Capped at 1.8 GW per year; unused capacity carries over to the following year.
STACKABILITY
Taxpayers cannot claim both the ITC §48E and the PTC §45Y for the same project.
INCREASES
Domestic Content – 10%
Energy Community – 10%
REDUCTIONS
Up to 15% for tax-exempt bond financing.
DIRECT PAY: YES
TRANSFERABILITY: YES
Clean Electricity Investment Credit
*Projects placed in service after December 31, 2024 will be eligible. Phaseout of credit will be
the later of 2032 or when U.S. greenhouse gas emissions are ≤ 25% of 2022 emissions.
§48D
Added by the CHIPS Act, not the IRA
CREDIT AMOUNT
25% of the investment in the manufacturing facility.
DIRECT PAY: YES
Only available to tax-exempts, including nonfederal governments.
TRANSFERABILITY: YES
Taxable persons only.
Advanced Manufacturing Investment Credit
*Available for facilities placed in service after December 31, 2022.
Construction needs to begin before December 31, 2026.
Available for manufacturing semiconductors and equipment to manufacture semiconductors in the United States.
Geothermal Heat Property:
6% in 2023-2032
5.2% in 2033; 4.4% in 2034
Solar
Click on any of the statutes below for details
Incentives Available
Renewable Electricity Production Credit
§45
Clean Electricity Production Credit
§45Y
Clean Electricity Investment Credit
§48E
Renewable Electricity Generation and Storage
Click on any of the statutes below for details
Incentives Available
Clean Electricity Production Credit
§45Y
Energy Investment Credit
§48
Clean Electricity Investment Credit
§48E
Renewable Electricity Production Credit
§45
Renewable Fuels
Other Non-Federal Tax Credit Incentives Available
The federal incentives can be stacked with RINs and LCFS credits under CA, WA, and OR.
Click on any of the statutes below for details
Incentives Available
Clean Fuel Production Credit
§45Z
Second Generation Biofuel Producer Credit
§40(b)(6)
Sustainable Aviation Fuel Credit
§40B
Carbon Capture
Other Non-Federal Tax Credit Incentives Available
If the carbon capture occurs at a transportation fuel production facility, the §45Q credits can be stacked with LCFS credits on the resultant low-carbon transportation fuel.
Click on any of the statutes below for details
Incentives Available
Credit for Carbon Oxide Sequestration
§45Q
Electric Vehicles
Click on any of the statutes below for details
Incentives Available
Clean Vehicle Credit
§30D
Previously Owned Clean Vehicles
§25E
Credit for Qualified Commercial Clean Vehicles
§45W
Wind
Click on any of the statutes below for details
Incentives Available
Clean Electricity Production Credit
§45Y
Energy Investment Credit
§48
Clean Electricity Investment Credit
§48E
Renewable Electricity Production Credit
§45
Renewable Natural Gas
Other Non-Federal Tax Credit Incentives Available
The federal incentives can be stacked with RINs and LCFS credits under CA, WA, and OR.
Click on any of the statutes below for details
Incentives Available
Clean Fuel Production Credit
§45Z
Sustainable Aviation Fuel Credit
§40B
The §48 ITC potentially may be combined with the §40B credit in 2023 and 2024, the §45Z credit in 2025, 2026, 2027 and where applicable the §45Q credit. However, the §45Q credit cannot be stacked with the §45Z credit.
Clean Electricity Production Credit
§45Y
Energy Investment Credit
§48
Clean Electricity Investment Credit
§48E
Renewable Electricity Production Credit
§45
Geothermal
Click on any of the statutes below for details
Incentives Available
Clean Electricity Production Credit
§45Y
Energy Investment Credit
§48
Clean Electricity Investment Credit
§48E
Renewable Electricity Production Credit
§45
Clean Manufacturing Incentives
Click on any of the statutes below for details
Incentives Available
Advanced Manufacturing Investment Credit
§48D
Advanced Manufacturing Production Credit
§45X
Tax Incentives by Technology
TRANSFERABILITY: YES
For vehicles placed in service after Dec. 31, 2023, buyers can sell credit to dealer who sold vehicle for cash or down payment on or before the purchase date.
Inflation Reduction Act