Earn the Credit

The first step in monetizing a clean energy or advanced manufacturing credit is earning the credit. That is, make a qualifying tax credit investment or have tax credit production activities to earn a credit that qualifies for the elective payment election under section 6417 or 48D(d) or can be transferred under section 6418. Credits that may qualify for an elective payment election under section 6417 are “applicable credits” and those that may qualify for a transfer election under section 6418 are “eligible credits.” For more information about the credits and how to earn them, see Appendix A – General Business Credit Resources.