Join 250,000+
professionals today
Add Insights to your inbox - get the latest
professional news for free.
- Just 1 email every week
- 3-min easy reads
- Uninterrupted updates
Join 250,000+
professionals today
Add Insights to your inbox - get the latest
professional news for free.
IRS Issues Update on Advanced Energy Tax Credit Opportunities
Join our 250K+ subscribers
Join our 250K+ subscribers
Subscribe03 SEP 2024 / IRS UPDATES
The U.S. Treasury, IRS, and DOE are progressing with the second round of the Advanced Energy Project Tax Credit (48C) Program, attracting over 800 proposals worth almost $40 billion in tax credits and $200 billion in investments. This initiative is important for businesses focused on clean energy, especially those in communities affected by coal mine and plant closures, with about $10.3 billion of credits set aside for these energy communities.
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.
Until next time…
Don’t forget to share this story on LinkedIn, X and Facebook
📢MYCPE ONE Insights has a newsletter on LinkedIn as well! If you want the sharpest analysis of all accounting and finance news without the jargon, Insights is the place to be! Click Here to Join
