March 29, 2024

The Energy Department (DOE) announced $4 billion in tax credits for over 100 projects across 35 states to accelerate domestic clean energy manufacturing and reduce greenhouse gas emissions at industrial facilities. Projects selected for tax credits under the Qualifying Advanced Energy Project Tax Credit (48C), funded by the Inflation Reduction Act, span across large, medium, and small businesses and state and local governments, all of which must meet prevailing wage and apprenticeship requirements to receive a 30% investment tax credit.

DOE notes that there was “great variety” in the size and scope of projects, with applicants requesting tax credits ranging from under $1 million to over $100 million. The funding allocation includes: (1) $2.7 billion in tax credits for clean energy manufacturing and recycling. Projects were selected from applications requesting support for the buildout of U.S. manufacturing capabilities critical for clean energy deployment and span clean hydrogen (e.g., electrolyzers, fuel cells, and subcomponents), grid (e.g., cables, conductors, transformers, and energy storage), electric vehicles (e.g., battery components, power electronics), nuclear power, solar power, and wind energy (including offshore wind components); (2) $800 million in tax credits for critical materials recycling, processing, and refining. Selected projects are investing in multiple electrical steel applications, lithium-ion battery recycling, and rare earth projects; and (3) $500 million for industrial decarbonization. Selected projects would implement decarbonization measures across diverse sectors, including chemicals, food and beverage, pulp and paper, biofuels, glass, ceramics, iron and steel, automotive manufacturing, and building materials.

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