Full Applications Now Open for Round 2 of the 48C Qualifying Advanced Energy Project Tax Credit Program

     The U.S. Department of Treasury, the Internal Revenue Service (IRS), and the U.S. Department of Energy (DOE) have announced the opening of full applications for Round 2 of the Qualifying Advanced Energy Project Tax Credit (48C) Program. Following an overwhelming response, with over 800 concept papers submitted and nearly $40 billion in tax credits requested, applicants are now invited to proceed to the next stage of the application process. 

     The 48C Program, funded by the Inflation Reduction Act, aims to accelerate domestic clean energy manufacturing and significantly reduce greenhouse gas emissions at industrial facilities. The program is a collaborative effort between DOE, the Treasury Department, and the IRS, with the DOE's Office of Manufacturing & Energy Supply Chains (MESC) overseeing the management of the program. 

     The IRS and DOE have notified applicants who submitted concept papers on the 48C Portal, encouraging more than 450 projects across 46 states and the District of Columbia to apply for full consideration. These projects represent over $22.5 billion in requested tax credits, including $4.8 billion allocated for projects in historic energy communities. These communities, often home to closed coal mines or coal plants, stand to benefit significantly from the program’s focus on revitalizing former energy hubs. The tax credits will support a wide range of businesses and non-profits, all of which must meet prevailing wage and apprenticeship requirements to qualify for the 30% investment tax credit. 

     Round 2 of the 48C Program includes up to $6 billion in tax credit allocations, with approximately $2.5 billion earmarked for projects in designated energy communities. At least $4 billion of the total $10 billion in the program will be reserved for these communities, supporting the program's goal to foster economic development in areas impacted by the decline of traditional energy industries. 

     Applicants who received either an "encourage" or "discourage" letter after the initial review can now submit a full application via the 48C Portal. The deadline for submission is Friday, October 18, 2024, at 11:59 p.m. Eastern time. In support of the application process, DOE, IRS, and the Treasury will host a webinar on Monday, September 16, to provide guidance and answer any questions. Interested parties can register for the webinar through the 48C landing page. 

     For more information about the Qualifying Advanced Energy Project Credit (48C) and to access application materials, visit the 48C Program website.