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Inflation Reduction Act 2022 · Amended by the OBBBA, July 2025

Federal Clean Energy Tax Credits Under the IRA

The Inflation Reduction Act of 2022 expanded the federal clean energy tax credits. The One Big Beautiful Bill Act (P.L. 119-21, signed July 4, 2025) then terminated some of them and set new deadlines for others. Here is where each major credit stands, who qualifies, and how they stack.

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30%

Up to 30% federal credit

6% to 30% of the qualified investment.

Clean Electricity Investment Credit (48E) - energy storage · Federal IRS

“(i) Base rate In the case of any energy storage technology which is not described in subclause (I) or (II) of clause (ii) and does not satisfy the requirements described in subclause (III) of such clause, the applicable percentage shall be 6 percent. | #### (ii) Alternative rate In the case of any energy storage technology- (I) with a capacity of less than 1 megawatt, (II) the construction of which begins prior to the date that is 60 days after the Secretary publishes guidance with respect to the requirements of paragraphs (3) and (4) of subsection (d), or (III) which- (aa) satisfies the requirements of subsection (d)(3), and (bb) with respect to the construction of such property, satisfies the requirements of subsection (d)(4), the applicable percentage shall be 30 percent.”

Each figure is one program's own published amount, linked to its source. Amounts from different programs are never added together.

10 Years
PRODUCTION CREDIT WINDOW
70%
MAX ITC WITH ADDERS
7/4/2026
WIND & SOLAR DEADLINE
Begin construction by this date, or be placed in service by 12/31/2027
Current Credits

Federal Credits Still Available

Select any credit to read a detailed guide with eligibility requirements, rates, bonus adders, and deadlines. These guides are general information. IncentEdge's verified catalog covers state, local and utility programs in New York, plus selected federal credits that apply nationwide.

§ITCSection 48 / 48E
MOST USED

Investment Tax Credit

The flagship clean energy tax credit, with bonus adders for energy communities, domestic content, and low-income projects. Under the OBBBA, wind and solar must have begun construction by July 4, 2026, or be placed in service by December 31, 2027.

Credit Rate
6% base, 30% under 1 MW AC or with prevailing wage and apprenticeship, plus up to 40 points in bonus adders
SolarWindStorageGeothermalFuel Cell
Transferable Direct PayPW Bonus AvailableFull guide
§PTCSection 45 / 45Y
MOST USED

Production Tax Credit

A per-kilowatt-hour credit for electricity produced from clean energy sources over 10 years. Projects choose between the ITC and the PTC. Wind and solar face the same OBBBA deadlines as the ITC.

Credit Rate
Per-kWh rate set by statute, inflation-adjusted yearly; reduced without prevailing wage at 1 MW AC and larger
WindSolarGeothermalHydroMarine
Transferable Direct PayPW Bonus AvailableFull guide
§48CSection 48C

Advanced Manufacturing Tax Credit

A $10 billion IRA allocation for manufacturers of clean energy equipment, awarded through competitive DOE and IRS allocation rounds. Confirm with DOE whether a round is open before planning around it.

Credit Rate
30% base; 6% without prevailing wage/apprenticeship
Solar ManufacturingWind ManufacturingBatteryEVsEfficiency
Transferable Direct PayPW Bonus AvailableFull guide
§45QSection 45Q

Carbon Capture & Sequestration Credit

The IRA doubled credit rates and significantly lowered capture thresholds, unlocking carbon capture economics for a much broader set of industrial and power generation projects.

Credit Rate
$85/ton geologic; $180/ton DAC; utilization equal for equipment placed in service after 7/4/2025
IndustrialPower GenerationDirect Air Capture
Transferable Direct PayPW Bonus AvailableFull guide
§45VSection 45V

Clean Hydrogen Production Credit

A 10-year production credit for clean hydrogen based on lifecycle greenhouse gas emissions. Projects with the lowest emissions (under 0.45 kg CO2e/kg H2) receive the full $3.00/kg. Facilities must begin construction before January 1, 2028.

Credit Rate
Tiered by lifecycle emissions: $0.60–$3.00/kg
Green HydrogenBlue HydrogenElectrolysisSMR + CCS
Transferable Direct PayPW Bonus AvailableFull guide

Terminated by the One Big Beautiful Bill Act

These are no longer available for new projects. Each guide explains what changed, who can still claim it, and what is available instead.

§45LSection 45L
TERMINATED

New Energy Efficient Home Credit

A per-unit credit for contractors building energy-efficient new homes. Contractors can still claim it for homes acquired on or before June 30, 2026.

Terminated for homes acquired after June 30, 2026
What happened
§179DSection 179D
TERMINATED

Commercial Building Energy Efficiency Deduction

A deduction for energy-efficient commercial building property. Projects that began construction on or before June 30, 2026 can still claim it in the year the property is placed in service.

Terminated for construction beginning after June 30, 2026
What happened
Compare

Side-by-Side: Current Credits

Base credit percentage, bonus adder availability, and maximum effective rate.

CreditBaseBonusMaxTransferableDirect Pay
§ITC30%+40%70%YesYes
§PTCPer kWhAddersSet yearly by IRSYesYes
§48C6%+24%30%YesYes
§45Q$17/tonPW adder$180/ton DACYesYes
§45V$0.12/kgTiers$3.00/kgYesYes
Stacking

Credit Stacking Rules

Most IRA credits can be layered together, but a few are mutually exclusive.

ITC and PTC are mutually exclusive, so choose one per project
45V on an electrolyzer can pair with the ITC on the separate generation asset
45V and 45Q cannot both be claimed at the same hydrogen facility
48C cannot stack with ITC/PTC for the same property
45Q is compatible with ITC when CCS is a separate system

Sources: 26 U.S.C. §45Q as amended by P.L. 119-21; IRC §45V(d)(2).

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See Which Verified Programs Fit Your Project

IncentEdge verifies New York state, NYC and utility programs, plus selected federal credits, against their published sources.

See If You QualifyRead the IRA Guide