26 USC 48C - Qualifying advanced energy project credit

U.S Code last checked for updates: May 04, 2024

§ 48C.

Qualifying advanced energy project credit

(a)

In general

(b)

Qualified investment

(1)

In general

(2)

Certain qualified progress expenditures rules made applicable

(3)

Limitation

(c)

Definitions

(1)

Qualifying advanced energy project

(A)

In general

The term “qualifying advanced energy project” means a project, any portion of the qualified investment of which is certified by the Secretary under subsection (e) as eligible for a credit under this section—

(i)

which re-equips, expands, or establishes an industrial or manufacturing facility for the production or recycling of—

(I)

property designed to be used to produce energy from the sun, water, wind, geothermal deposits (within the meaning of section 613(e)(2)), or other renewable resources,

(II)

fuel cells, microturbines, or energy storage systems and components,

(III)

electric grid modernization equipment or components,

(IV)

property designed to capture, remove, use, or sequester carbon oxide emissions,

(V)

equipment designed to refine, electrolyze, or blend any fuel, chemical, or product which is—

(aa)

renewable, or

(bb)

low-carbon and low-emission,

(VI)

property designed to produce energy conservation technologies (including residential, commercial, and industrial applications),

(VII)

light-, medium-, or heavy-duty electric or fuel cell vehicles, as well as—

(aa)

technologies, components, or materials for such vehicles, and

(bb)

associated charging or refueling infrastructure,

(VIII)

hybrid vehicles with a gross vehicle weight rating of not less than 14,000 pounds, as well as technologies, components, or materials for such vehicles, or

(IX)

other advanced energy property designed to reduce greenhouse gas emissions as may be determined by the Secretary,

(ii)

which re-equips an industrial or manufacturing facility with equipment designed to reduce greenhouse gas emissions by at least 20 percent through the installation of—

(I)

low- or zero-carbon process heat systems,

(II)

carbon capture, transport, utilization and storage systems,

(III)

energy efficiency and reduction in waste from industrial processes, or

(IV)

any other industrial technology designed to reduce greenhouse gas emissions, as determined by the Secretary, or

(iii)

which re-equips, expands, or establishes an industrial facility for the processing, refining, or recycling of critical materials (as defined in section 7002(a) of the Energy Act of 2020 (30 U.S.C. 1606(a)) 1

 So in original. Probably should be followed by a closing parenthesis.

(B)

Exception

(2)

Eligible property

The term “eligible property” means any property—

(A)

which is necessary for—

(i)

the production or recycling of property described in clause (i) of paragraph (1)(A),

(ii)

re-equipping an industrial or manufacturing facility described in clause (ii) of such paragraph, or

(iii)

re-equipping, expanding, or establishing an industrial facility described in clause (iii) of such paragraph,

(B)

which is—

(i)

tangible personal property, or

(ii)

other tangible property (not including a building or its structural components), but only if such property is used as an integral part of the qualified investment credit facility, and

(C)

with respect to which depreciation (or amortization in lieu of depreciation) is allowable.

(d)

Qualifying advanced energy project program

(1)

Establishment

(A)

In general

(B)

Limitation

(2)

Certification

(A)

Application period

(B)

Time to meet criteria for certification

(C)

Period of issuance

(3)

Selection criteria

In determining which qualifying advanced energy projects to certify under this section, the Secretary—

(A)

shall take into consideration only those projects where there is a reasonable expectation of commercial viability, and

(B)

shall take into consideration which projects—

(i)

will provide the greatest domestic job creation (both direct and indirect) during the credit period,

(ii)

will provide the greatest net impact in avoiding or reducing air pollutants or anthropogenic emissions of greenhouse gases,

(iii)

have the greatest potential for technological innovation and commercial deployment,

(iv)

have the lowest levelized cost of generated or stored energy, or of measured reduction in energy consumption or greenhouse gas emission (based on costs of the full supply chain), and

(v)

have the shortest project time from certification to completion.

(4)

Review and redistribution

(A)

Review

(B)

Redistribution

The Secretary may reallocate credits awarded under this section if the Secretary determines that—

(i)

there is an insufficient quantity of qualifying applications for certification pending at the time of the review, or

(ii)

any certification made pursuant to paragraph (2) has been revoked pursuant to paragraph (2)(B) because the project subject to the certification has been delayed as a result of third party opposition or litigation to the proposed project.

(C)

Reallocation

(5)

Disclosure of allocations

(e)

Additional allocations

(1)

In general

(2)

Limitation

The total amount of credits which may be allocated under the program established under paragraph (1) shall not exceed $10,000,000,000, of which not greater than $6,000,000,000 may be allocated to qualified investments which are not located within a census tract which—

(A)

is described in clause (iii) of section 45(b)(11)(B), and

(B)

prior to the date of enactment of this subsection, had no project which received a certification and allocation of credits under subsection (d).

(3)

Certifications

(A)

Application requirement

(B)

Time to meet criteria for certification

(C)

Period of issuance

(D)

Location of project

(4)

Credit rate conditioned upon wage and apprenticeship requirements

(A)

Base rate

(B)

Alternative rate

(5)

Prevailing wage requirements

(A)

In general

(B)

Correction and penalty related to failure to satisfy wage requirements

(6)

Apprenticeship requirements

(7)

Disclosure of allocations

(f)

Denial of double benefit

(Added Pub. L. 111–5, div. B, title I, § 1302(b), Feb. 17, 2009, 123 Stat. 345; amended Pub. L. 113–295, div. A, title II, §§ 209(g), 221(a)(2)(C), Dec. 19, 2014, 128 Stat. 4029, 4037; Pub. L. 117–169, title I, § 13501(a)–(d), Aug. 16, 2022, 136 Stat. 1969–1971.)

cite as: 26 USC 48C