Inflation Reduction Act (IRA) Tax Credits
The Inflation Reduction Act (IRA) is the most significant investment in climate and clean energy in U.S. history. More than half of the new spending coming out of the IRA will be in the form of tax credits. These credits will have wide reaching, cross-sector impacts for industry, and consumers can tap directly into these crucial resources as well.
Below are resources for each tax credit contained within the IRA, including fact sheets detailing eligibility, period of availability, and credit amount, and links to U.S. Internal Revenue Service announcements and guidance. For more information, visit the White House’s Clean Energy for All website, here.
Tax Credits for Industry, Developers, and Investment
Manufacturing
Advanced Energy Project Credit (26 U.S. Code § 48C)
- Fact Sheet
- IRS Announcement: IRS and Treasury provide guidance on the Qualifying Advanced Energy Project Credit | Internal Revenue Service
- IRS Official Guidance: N-2023-18 (irs.gov)
Advanced Manufacturing Production Credit (26 U.S. Code § 45X)
- Fact sheet
- IRS Official Guidance: TBA
Clean Energy Technologies
Clean Electricity Investment Tax Credit (26 U.S. Code § 48E)
- Fact Sheet
- IRS Guidance: Federal Register :: Prevailing Wage and Apprenticeship Initial Guidance Under Section 45(b)(6)(B)(ii) and Other Substantially Similar Provisions
Additional Information:
Clean Electricity Production Tax Credit (26 U.S. Code § 45Y)
Cost Recovery for Qualified Facilities, Qualified Property, and Energy Storage Technology (26 U.S. Code § 168(e)(3)(B); IRA section 13703)
- Fact Sheet: A description of this tax credit can be found on the fact sheets of the Clean Electricity Production Tax Credit and the Clean Electricity Investment Tax Credit under “Additional Information.”
- IRS Guidance: Federal Register :: Prevailing Wage and Apprenticeship Initial Guidance Under Section 45(b)(6)(B)(ii) and Other Substantially Similar Provisions
Additional Information:
Low-Income Communities Bonus Credit (26 U.S. Code § 48(e), 26 U.S. Code § 48E(h))
- Fact Sheet
- IRS Announcement: IRS issues guidance on eligibility requirement for energy communities for the bonus credit program under the Inflation Reduction Act | Internal Revenue Service
- IRS Official Guidance: Initial Guidance Establishing Program to Allocate Environmental Justice Solar and Wind Capacity Limitation Under Section 48(e) (irs.gov)
Investment Tax Credit for Energy Property (26 U.S. Code § 48)
Production Tax Credit for Electricity from Renewables (26 U.S. Code § 45)
Zero-Emission Nuclear Power Production Credit (26 U.S. Code § 45U)
Clean Hydrogen
Clean Hydrogen Production Tax Credit (26 U.S. Code § 45V)
Cleaner Transportation Fuels
Clean Fuel Production Credit (26 U.S. Code § 45Z)
Extension of Second-Generation Biofuel Incentives (26 U.S. Code § 40)
- Fact sheet
- IRS Guidance: TBA
Extension of Tax Credit for Alternative Fuels (26 U.S. Code § 6426(d), 26 U.S. Code § 6426(e), 26 U.S. Code § 6427(e))
- Fact sheet
- IRS Guidance: TBA
Extension of Incentives for Biodiesel and Renewable Diesel (26 U.S. Code § 40A, 26 U.S. Code § 6426(c), 26 U.S. Code § 6427(e))
- Fact sheet
- IRS Guidance: TBA
Sustainable Aviation Fuel Credit (26 U.S. Code § 40A, 26 U.S. Code § 6426(c), 26 U.S. Code § 6427(e))
Energy Efficient, Low Carbon Buildings
Energy Efficient Commercial Buildings Deduction (26 U.S. Code § 179D)
Industrial Decarbonization and Carbon Management
Credit for Carbon Oxide Sequestration (26 U.S. Code § 45Q)
Tax Credits for Consumers
Clean Vehicles
Alternative Fuel Vehicle Refueling Property Credit (26 U.S. Code § 30C)
Clean Vehicle Credit (26 U.S. Code § 30D)
- Fact Sheet
- IRS Announcement: Treasury and IRS set out procedures for manufacturers, sellers of clean vehicles | Internal Revenue Service
- IRS Guidance: Proc. 2022-42 (irs.gov)
- Additional Information:
- Frequently Asked Questions About the New, Previously-Owned and Qualified Commercial Clean Vehicles Credit | Internal Revenue Service (irs.gov)
- IRS issues guidance and updates frequently asked questions related to the new clean vehicle critical mineral and battery components | Internal Revenue Service
Credit for Previously-Owned Clean Vehicles (26 U.S. Code § 25E)
- Fact Sheet
- IRS Announcement: Treasury and IRS set out procedures for manufacturers, sellers of clean vehicles | Internal Revenue Service
- IRS Guidance: Proc. 2022-42 (irs.gov)
- Additional Information:
Credit for Qualified Commercial Clean Vehicles (26 U.S. Code § 45W)
- Fact Sheet
- IRS Announcement: Treasury and IRS set out procedures for manufacturers, sellers of clean vehicles | Internal Revenue Service
- IRS Guidance: Proc. 2022-42 (irs.gov)
- Additional Information:
Lowering Household Energy Costs
Energy Efficiency Home Improvement Credit (26 U.S. Code § 25C)
- Fact Sheet
- IRS Guidance: TBA
- Additional Information:
- Frequently asked questions about energy efficient home improvements and residential clean energy property credits — Timing of Credits | Internal Revenue Service (irs.gov)
- Request for Comments on Incentive Provisions for Improving the Energy Efficiency of Residential and Commercial Buildings (irs.gov)
New Energy Efficient Homes Credit (26 U.S. Code § 45L)
Residential Clean Energy Credit (26 U.S. Code § 25D)
- Fact Sheet
- IRS Guidance: TBA
- Additional Information:
- Frequently asked questions about energy efficient home improvements and residential clean energy property credits — Timing of Credits | Internal Revenue Service (irs.gov)
- Request for Comments on Incentive Provisions for Improving the Energy Efficiency of Residential and Commercial Buildings (irs.gov)
