IRS Issues Update on Advanced Energy Tax Credit Opportunities

The U.S. Treasury, IRS, and DOE are moving full steam ahead with Round 2 of the Qualifying Advanced Energy Project Tax Credit (48C) Program. This round is seeing overwhelming interest with over 800 proposals, requesting nearly $40 billion in tax credits and $200 billion in project investments. This isn’t just big news—it’s a critical opportunity for businesses pushing the clean energy frontier. 

For professionals, it’s crucial to guide clients through this process. Projects are flooding in from 46 states and D.C., with a special focus on communities hit hard by coal mine and plant closures. About $10.3 billion of the requested credits are earmarked for these energy communities, providing a much-needed boost. 

If you’re one of the many who submitted a concept paper, you might’ve received feedback—“encouraged” or “discouraged. Here’s how you can help your clients navigate these new government steps: 

Know the Requirements: Projects must comply with prevailing wage and apprenticeship standards to access a 30% investment tax credit. Understand these criteria before submitting applications. 

Location Advantage: Projects in energy communities—areas impacted by coal mine and plant closures—are in a strong position. Approximately $2.5 billion is earmarked for these areas, offering a competitive edge to qualifying projects. Advise clients to leverage this if applicable. 

Stick to the Process: Encourage your clients to use the application templates available on the 48C Portal and follow guidelines strictly. Proper documentation and compliance can make or break the application. 

Time is of the Essence: The deadline is set—October 18 at 11:59 PM ET. Missing this cut-off could mean missing out on significant tax benefits. Remind clients to have their applications ready well in advance to avoid last-minute hiccups. 

This is a pivotal moment for clean energy investments. By staying on top of these updates, you can help your clients secure valuable tax credits and advance their sustainable energy projects. Encourage them to attend the DOE, IRS, and Treasury’s upcoming webinar on September 16 for additional guidance. Let’s make sure they’re not just in the game but ahead of it! To know more, visit IRS news from here.