Manufacturing: Renewable Energy Tax Credits

Section 48 Renewable Energy Investment Tax Credit

Is it time to add renewable energy to help manage your business costs and energy security?

The Inflation Reduction Act of 2022 brought the most significant and transformative renewable energy incentive opportunities to help US businesses manage and substantially reduce their energy costs and improve their energy security. Taking the next step toward enhancing our renewable energy infrastructure, it builds on gains from the American Recovery and Reinvestment Act of 2009. Not just limited to big energy, utility companies, and tax equity investors, the benefits of clean energy are available to any business that consumes... Learn more >>

IRC §45X Advanced Manufacturing Production Credit

If you are...

• Manufacturing certain renewable energy or energy storage products, parts, or components in the US
• Producing critical minerals in the US including aluminum, beryllium, chromium, cobalt, lithium and others
• Selling to an unrelated person as a part of your company’s trade or business

You may qualify for a production tax credit for up to 10 years through 2032.

The 45X production credit supports domestic manufacturing of renewable energy components within the US. Focusing on solar, wind, battery and critical mineral applications, it is to provide stability to manufacturers for parts and materials used in making renewable and energy efficient products. Even if your company can’t use the credits they can be a direct pay refundable credit sold for cash through provisions of the Inflation Reduction Act of 2022. This helps US businesses manage and substantially reduce their energy costs... Learn more >>

IRC §48C Qualifying Advanced Energy Project Credit

If you are...

• Expanding your plant for manufacturing renewable energy products
• Adding or expanding recycling facilities for renewable energy equipment or critical materials and minerals
• Planning to install equipment in your plant to reduce greenhouse gases

You may qualify for up to a 30% federal tax credit.

If you answer yes to any of these questions the enhanced $10 billion Advanced Energy Projects Program can help by offering tax credits for manufacturing or recycling renewable energy equipment, critical materials or used for greenhouse gas reduction. This program awards allocations through an ongoing application process. Even if you can’t use the credits they can be sold for cash through provisions of the Inflation Reduction Act of 2022 designed to help US businesses manage and substantially reduce their energy costs, improve energy... Learn more >>

Questions? Seek Professional Advice

Contact your Porte Brown manufacturing & distribution tax advisor with any questions you may have today!