Select Federal Tax Credits Under the Federal Bipartisan Infrastructure Law and Inflation Reduction Act
The following table only includes tax credits with direct pay options. Program descriptions are abridged. Please refer to the links in the additional resources column for full details.
- For further details on programs, please see the White House Inflation Reduction Act Guidebook and Bipartisan Infrastructure Law Guidebook.
- For a list of other select funding opportunities, please see the Table for Select Federal Bipartisan Infrastructure Law and Inflation Reduction Act Funding Opportunities.
| Program | Description | Eligible Entities | Additional Resources |
|---|---|---|---|
| Production Tax Credit for Electricity from Renewables | Provides a tax credit for production of electricity from renewable sources.1 | Facilities generating electricity from wind, biomass, geothermal, solar, small irrigation, landfill and trash, hydropower, and marine and hydrokinetic renewable energy | |
| Investment Tax Credit for Energy Property | Provides a tax credit for investment in renewable energy projects. | Fuel cell, solar, geothermal, small wind, energy storage, biogas, microgrid controllers, and combined heat and power properties | |
| Increase in Energy Credit for Solar and Wind Facilities Placed in Service in Connection with Low-Income Communities | Provides an additional investment tax credit for small-scale solar and wind facilities in low-income communities. | Solar and wind facilities with a maximum net output of less than 5 MW, including associated energy storage technology | |
| Zero-Emission Nuclear Power Production Credit | Tax credit for electricity produced at a qualified nuclear power facility. | Existing nuclear power plants at time of enactment that are not eligible for the 45J credit | |
| Clean Electricity Production Tax Credit | Provides a technology-neutral tax credit for production of clean electricity.2 | Facilities generating electricity for which the greenhouse gas emissions rate is not greater than zero | |
| Clean Electricity Investment Tax Credit | Provides a technology-neutral tax credit for investment in facilities that generate clean electricity. | Facilities that generate electricity with a greenhouse gas emissions rate that is not greater than zero and qualified energy storage technologies | |
| Cost Recovery for Qualified Facilities, Qualified Property, and Energy Storage Technology | Provides an additional tax deduction for facilities or property qualifying for the Clean Electricity Investment and Production tax credits. | Facilities eligible for the Clean Electricity Investment and Production tax credits | N/A |
| Advanced Energy Project Credit | Provides a tax credit for investments in advanced energy projects, as defined in 26 USC § 48C(c)(1). | A project that (1) re-equips, expands, or establishes an industrial or manufacturing facility for the production or recycling of a range of clean energy equipment and vehicles; (2) re-equips an industrial or manufacturing facility with equipment designed to reduce greenhouse gas emissions by at least 20 percent; or (3) re-equips, expands, or establishes an industrial facility for the processing, refining, or recycling of critical materials | |
| Advanced Manufacturing Production Credit | Provides a production tax credit for domestic manufacturing of components for solar and wind energy, inverters, battery components, and critical minerals. | Domestic manufacturers | |
| Alternative Fuel Vehicle Refueling Property Credit | Provides a tax credit for alternative fuel vehicle refueling and charging property in low-income and rural areas. Alternative fuels include electricity, ethanol, natural gas, hydrogen, biodiesel, and others. | The qualified alternative fuel vehicle refueling property must be for clean-burning fuels, as defined in the statute, and must be located in low-income or rural areas | |
| Clean Fuel Production Credit | Provides a tax credit for domestic production of clean transportation fuels, including sustainable aviation fuels. | Registered producers in the United States. Fuels with less than 50 kilograms of carbon dioxide equivalent per million British thermal units (CO2e per mmBTU) qualify as clean fuels eligible for credits | |
| Carbon Oxide Sequestration Credit | Provides a credit for carbon dioxide sequestration coupled with permitted end uses within the United States.3 | U.S. facilities within minimum volumes: 1,000 metric tons of CO2 per year for DAC facilities; 18,750 metric tons for electricity generating facilities (with carbon capture capacity of 75% of baseline CO2 production); 12,500 metric tons for other facilities | |
| Clean Hydrogen Production Tax Credit | Provides a tax credit for the production of clean hydrogen at a qualified clean hydrogen production facility.4 | Producers of hydrogen in the United States |
Note: Table excludes tax credits without direct pay options, including: Energy Efficient Commercial Buildings Deduction; New Energy Efficient Homes Credit; Residential Clean Energy Credit; Energy Efficient Home Improvement Credit; Extension of Tax Credit for Alternative Fuels; Extension of Tax Credits for Biodiesel and Renewable Diesel; Credit for Previously-Owned Clean Vehicles; Clean Vehicle Credit
- Applies to qualified facilities that are originally placed in service after December 31, 2022; applies separately with respect to each qualified facility.
- Applies separately with regard to each facility.
- Entities other than applicable entities are eligible for up to 5 years of direct pay (which is less than the full credit period and expires at the end of 2032) if they make an election. Applies to carbon capture equipment (CCE) that is originally placed in service after December 31, 2022. Applies separately with respect to CCE placed in service during a taxable year.
- Entities other than applicable entities are eligible for up to 5 years of direct pay, which is less than the full credit period and expires at the end of 2032, if they make an election. Applies to facilities placed in service after December 31, 2012. Applies separately with regard to each facility.