0623 Publ 5817-G (PDF)

Official source: IRS Forms, Instructions & Publications (https://www.irs.gov/pub/irs-pdf/p5817g.pdf), retrieved 2026-10-03. U.S. Government work (17 U.S.C. § 105).

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Clean Energy Tax Incentives: Elective Pay Eligible Tax Credits

on their tax returns and as a result receive direct payments for certain clean energy tax credits.

Tax Provision Description

Production Tax Credit for Electricity from Renewables ( § 45, pre-2025)

Clean Electricity Production Tax Credit ( § 45Y, 2025 onwards)

Investment Tax Credit for Energy Property ( § 48, pre-2025)

Clean Electricity Investment Tax Credit ( § 48E, 2025 onwards)

Low-Income Communities Bonus Credit ( § 48(e), 48E(h))

Application required

For production of electricity from eligible renewable sources, including wind, biomass, geothermal, solar, small irrigation, landfill and trash, hydropower, marine and hydrokinetic energy.

Credit Amount (for 2022): 0.55 cents/kilowatt (kW); (1/2 rate for electricity produced from open loop biomass, landfill gas, and trash); 2.75 cents/kW if Prevailing Wage and Apprenticeship (PWA) rules are met ^1,2,3,7

Technology-neutral tax credit for production of clean electricity . Replaces § 45 for facilities that begin construction and are placed in service after 2024.

Credit Amount: Starts in 2025, consistent with credit amounts under section 45 ^1,2,3,6,7

For investment in renewable energy projects including fuel cell, solar, geothermal, small wind, energy storage, biogas, microgrid controllers, and combined heat and power properties

Credit Amount: 6% of qualified investment (basis); 30% if PWA requirements met ^1,4,5,6,8

Technology-neutral tax credit for investment in facilities that generate clean electricity and qualified energy storage technologies. Replaces § 48 for facilities that begin construction and are placed in service after 2024

Credit Amount: 6% of qualified investment (basis); 30% if PWA requirements met ^1,4,5,6

Additional investment tax credit for small-scale solar and wind (§ 48(e)) or clean electricity (§48E(h)) facil­ ities (<5MW net output) on Indian land, federally subsidized housing, in low-income communities, and benefit low-income households. Allocated through an application process.

Credit Amount: 10 or 20 percentage point increase on base investment tax credit ⁷

Credit for carbon dioxide sequestration coupled with permitted end uses in the United States. Credit for Carbon Oxide Credit Amount: $12-36 per metric ton of qualified carbon oxide captured and sequestered, used as a tertiary Sequestration ( § 45Q) injectant, or used, depending on the specified end use; $60-$180 per metric ton if PWA requirements met. ^1,7

Zero-Emission Nuclear Power For electricity from nuclear power facilities. Facilities in operation prior to August 16, 2022. Production Credit ( § 45U) Credit Amount (for 2023): 0.3 cents/kWh (reduced rate for larger facilities); 1.5 cent/kWh if PW req’s met ^1,7

Advanced Energy Project For investments in advanced energy projects. A total of $10 billion will be allocated, not less than $4 billion Credit ( § 48C) of which will be allocated to projects in certain energy communities.

Application required Credit Amount: 6% of taxpayer’s qualified investment; 30% if PWA requirements are met ¹

Advanced Manufacturing Production Credit ( § 45X)

Credit for Qualified Commercial Clean Vehicles ( § 45W)

Production tax credit for domestic clean energy manufacturing of components including solar and wind energy, inverters, battery components, and critical materials.

Credit Amount: Varies by component

For purchasers of commercial clean vehicles . Qualifying vehicles include passenger vehicles, buses, ambulances, and certain other vehicles for use on public streets, roads, and highways.

Credit Amount: Up to $40,000 (max $7,500 for vehicles <14,000 lbs) ⁹

Alternative Fuel Vehicle For alternative fuel vehicle refueling and charging property, located in low-income and non-urban areas. Refueling Property Credit Qualified fuels include electricity, ethanol, natural gas, hydrogen, and biodiesel. ( § 30C) Credit Amount: 6% of basis for businesses and can increase to 30% if PWA is met.

Clean Hydrogen Production Tax Credit ( § 45V)

Clean Fuel Production Credit ( § 45Z, 2025 onwards)

For producing clean hydrogen at a qualified, U.S.-based clean hydrogen production facility.

Credit Amount: $0.60/kg multiplied by the applicable percentage (20% to 100%, depending on lifecycle green­ house gas emissions), amount increases if PWA is met ^1,7

Technology neutral tax credit for domestic production of clean transportation fuels, including sustainable aviation fuels, beginning in 2025*

Credit Amount: $0.20/gallon ($0.35/gal for aviation fuel) multiplied by CO2 “emissions factor”; $1.00/gallon ($1.75/gal for aviation fuel) multiplied by CO2 “emissions factor” if PWA is met ^1,7

Please see the notes on the next page or see IRS.gov/cleanenergy for more information.

Notes:

The information in this document may be subject to change as guidance is issued or finalized. For all IRA clean energy tax credits, please see irs.gov/cleanenergy for further details and eligibility requirements.

1 Credit is increased by 5 times for projects that pay prevailing wages and use registered apprentices. Apprenticeship requirements do not apply for §§ 45L and 45U. Prevailing wage and apprenticeship requirements do not apply to certain projects, including certain projects of less than 1 megawatt or those that began construction prior to January 29, 2023.

2 Credit is increased by 10% if the project meets certain domestic content requirements for steel or iron, and manufac tured products.

3 Credit is increased by 10% if located in an energy community.

4 Credit is increased by up to 10 percentage points for projects meeting certain domestic content requirements for steel, iron, and manufactured products.

5 Credit is increased by up to 10 percentage points if located in an energy community.

6 Section 168(e) provides favorable depreciation treatment for facilities or property qualifying for this tax credit. These facilities or property will be treated as a 5-year property for purposes of cost recovery, leaving them with lower taxable income in the earlier years of a clean energy investment.

7 Credit rate is adjusted annually for inflation.

8 See section 48 for more detail and applicable exceptions to the credit rate.

9 The entities eligible for elective pay of the commercial clean vehicle credit is a subset of the entities eligible for elective pay of other credits. In addition, starting January 1, 2024, the amount of a new clean vehicle or previously owned clean vehicle tax credit (but not a commercial clean vehicle credit) can be transferred to a dealer for an equivalent reduction in the eligible vehicle’s sales price.

Publication 5817-G (6-2023) Catalog Number 94141A Department of the Treasury Internal Revenue Service www.irs.gov