Part III—Qualifying Advanced Energy

Qualifying advanced energy project means a project that:

Re-equips, expands, or establishes an industrial or a manufacturing facility for the production or recycling of specified advanced energy property;
Re-equips any industrial or manufacturing facility, with equipment designed to reduce greenhouse gas emissions by at least 20% through the installation of:
- Low- or zero-carbon process heat systems;
- Carbon capture, transport, utilization, and storage systems;
- Energy efficiency and reduction in waste from industrial processes; or
- Any other industrial technology designed to reduce greenhouse gas emissions, as determined by the Secretary;
Re-equips, expands or establishes an industrial facility for the processing, refining, or recycling of critical materials (as defined in section 7002(a) of the Energy Act of 2020);
The Secretary has certified per section 48C(e)(3) that part or all of the qualified investment in the qualifying advanced energy project is eligible for a section 48C credit; and

12 Instructions for Form 3468 (2025)

The project does not include any portion of a project for the production of any property that is used in the refining or blending of any transportation fuels (other than renewable fuels).

Specified advanced energy property. The term specified advanced energy property means any of the following:

Property designed for use in the production of energy from the sun, water, wind, geothermal deposits (within the meaning of section 613(e)(2)), or other renewable resources;
Fuel cells, microturbines, or energy storage systems and components;
Electric grid modernization equipment or components;
Property designed to capture, remove, use, or sequester carbon oxide emissions;
Equipment designed to refine, electrolyze, or blend any fuel, chemical, or product which is renewable, or low carbon and low emission;
Property designed to produce energy conservation technologies (including residential, commercial, and industrial applications);
Light-, medium-, or heavy-duty electric or fuel cell vehicles, as well as technologies, components, or materials for such vehicles, and associated charging or refueling infrastructure;
Hybrid vehicles with a gross vehicle weight rating of not less than 14,000 pounds as well as technologies, components, or materials for such vehicles; or
Other advanced energy property designed to reduce greenhouse gas emissions as may be determined by the Secretary.

Eligible property. Eligible property is property that:

Is necessary for the production or recycling of property described in section 48C(c)(1)(A)(i); re-equipping an industrial or manufacturing facility described in section 48C(c)(1)(A)(ii); or re-equipping, expanding, or establishing an industrial facility described in section 48C(c)(1)(A)(iii);
Which depreciation or amortization is allowable;
Is tangible personal property or other tangible property (not including a building or its structural components), but only if the property is used as an integral part of the qualifying advanced energy project; and
Was not placed in service prior to being awarded an allocation of section 48C credits under the section 48C(e) program. See Notice 2023-44, 2023-25 I.R.B. 924 available at IRS.gov/irb/ 2023-25_IRB#NOT-2023-44 .

Caution: You cannot claim any investment credits for a facility or property under section 48C if you also claimed credits under section 45X. See Regulations section 1.45X-1(g) for more details.

Certification. To be eligible for the qualifying advanced energy project credit, some or all of the qualified investment in the qualifying advanced energy project must be certified by the IRS under section 48C(d). See Notice 2023-18, 2023-10 I.R.B. 508 available at IRS.gov/irb/ 2023-10_IRB#NOT-2023-18 , for more information on the certification and program.

See Notice 2023-44 for additional guidance for applicants seeking section 48C credit allocations in the qualifying advanced energy project credit allocation program under IRA 2022. See Notice 2023-44, 2023-25 I.R.B. 924 available at IRS.gov/irb/ 2023-25_IRB#NOT-2023-44 . See Notice 2024-36 which clarifies and amplifies the previously established 48C(e) guidance and allocation procedures by announcing the second round of credit allocations. See Notice 2024-36, 2024-24 I.R.B. 1479 available at IRS.gov/irb/2024-24_IRB#NOT-2024-36 .

Line 1a Enter the qualified investment in qualifying advanced energy project property placed in service during the tax year. Qualified investment is the basis of eligible property placed in service during the tax year that is part of a qualifying advanced energy project.

Line 1b If you met the PWA requirements described in Part I, lines 7 and 8, Filers Completing Part III, earlier, and the certification for PWA requirements was met as part of the 48C(e) application per Notice 2023-18, section 5.07, then enter 30%. Otherwise, enter 6%.

Line 1d Enter your 48C allocation control number for the qualifying advanced energy property.

Line 1f If the TIN from Part I, line 3b(ii), is different than the originating pass-through entity’s employer identification number (EIN), then enter the originating pass-through EIN. Otherwise, leave blank.

Line 2 Patrons, including cooperatives that are patrons in other cooperatives, enter the unused investment credit from the qualifying advanced energy property credit allocated from cooperatives. If you are a cooperative, see the instructions for Form 3800, Part III, line 1d, for allocating the investment credit to your patrons.

Tip: See Cooperatives, earlier, for filing Form 3468 to report any unused credits from cooperatives.

Line 3

Partnerships or S corporations. If you’re a partnership or S corporation electing to transfer the qualifying advanced energy credit with respect to a project (or portion of) under section 6418(c), you must report the total credit amount on line 3 and Form 3800, Part III, line 1d.