What’s New

Part IV, advanced manufacturing investment credit. The advanced manufacturing investment credit is equal to 35% of the qualified investment, unless the property was placed in service before 2026, in which case the rate remains 25%. See Part IV , later.

New Form 7220. If you’re claiming a credit under section 48C in Part III; under section 48E in Part V; or under section 48 in Part VI, and you’re claiming the increased credit amount for meeting the prevailing wage and apprenticeship (PWA) requirements, you must file Form 7220, Prevailing Wage and Apprenticeship (PWA) Verification and Corrections, for each facility, property, project, or energy storage technology, as applicable. See Form 7220 and its instructions for more information.

Part I, line 2b. This line was divided into two checkboxes and an entry space for the Department of Energy (DOE) control number. If you’re claiming a credit under Part V, Section A, complete Part I, line 2b, as applicable. See Part I, Line 2b, for more information.

Part V, clean electricity investment credit. P.L. 119-21, commonly known as the One Big Beautiful Bill Act, has restricted material assistance from prohibited foreign entities, added restrictions related to prohibited foreign entities, and added a termination of the credit for wind or solar facilities placed in service after 2027 where the beginning of construction is after July 4, 2026. See Part V , later, for more information.

Part VI, energy credit. P.L. 119-21 has restricted the applicable percentage for certain qualifying geothermal energy property and certain qualifying solar energy property. See Part VI , later, for more information.

Part VII, lines 1h and 1i. The transition rule under the rehabilitation credit in Part VII was removed.