48C: Advanced Energy Project Credit

What is the Section 48C Advanced Energy Project Credit?

The Section 48C Advanced Energy Project Credit is an up to 30% investment tax credit for clean energy manufacturing facilities or other emissions reduction projects. 48C was established by the 2009 American Recovery and Reinvestment Act.

A wide range of clean energy infrastructure projects are eligible to compete for and win non-dilutive capital support from 48C.

The IRA expanded the 48C credit with $10 billion in funding, to support up to $33 billion in new or retrofit clean energy projects. Eligible projects fall under one of three categories:

  • Clean energy manufacturing and recycling

  • Reducing industrial/manufacturing facility emissions by >20%

  • Processing, refining, or recycling of critical materials.

Round 2 of applications for the $6 billion remaining via the 48C tax credit open in late spring or summer 2024.

The Treasury and DOE made $4 billion of credits available in its first allocation round, with applicants submitting concept papers seeking nearly $42 billion in federal funding - meaning demand was 10x larger than the available pool of credits! BSP expects similar demand in Round 2.

Curious on whether you might be eligible? Interested in support for your 48C application? Read more in our 48C overview page, or contact us at 48C@boundarystone.com.

Election Impacts

Under a second term of the Biden-Harris Administration

The Biden Administration is actively working to implement 48C funding provided by the IRA. Round 1 selections (~$4 billion) were announced in March 2024. The competition for the second round of 48C funds (approximately $6 billion) is expected in summer 2024, and it is expected that awards would be made before the end of the year. 

This will effectively complete the competition for IRA-provided 48C funds. A second term Biden Administration would monitor these projects and be positioned to address any issues with them as awardee projects evolve.

Under a Republican Administration

It is expected that all 48C credit allocations will be awarded prior to a transition to a Republican Administration. As a result, there would be no impact on 48C awards. This also means that there is a limited timeframe, happening only in 2024, for eligible entities to pursue and win funding from this set of 48C allocations.

Interested in learning more about 48C or planning to apply?

Boundary Stone Partners can help maximize your 48C application’s prospects of success. 48C is a time limited opportunity, and demand for Round 2 is expected to be high. BSP provides a range of advisory support offerings for 48C applications, and has a demonstrated track record of success in helping companies secure 48C allocations. 

Curious on whether you might be eligible? Interested in support for your 48C application? Read more in our 48C overview page, or contact us at 48C@boundarystone.com.

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The information in this online resource is made available by Boundary Stone Partners (“BSP”) and is intended for informational and general knowledge purposes only. It is not meant to convey BSP’s official position on any specific matter or on behalf of any client, and it is not designed to be, and should not be used as, a form of legal or investment advice, or as the basis for legal or investment decisions. The information provided here is published “AS IS” and is not guaranteed to be complete, accurate, and or up-to-date. If you have specific questions regarding a particular fact situation, we encourage you to contact BSP or, for legal matters, to consult with competent legal counsel.