IRS Announces Round 2 of Section 48C Tax Credit Allocations
The IRS has announced Round 2 of tax credit allocations under the IRC Section 48C Qualifying Advanced Energy Project program along with the issuance of Notice 2024-36. Round 2 will provide for roughly $6 billion in credits for taxpayers investing in facilities and projects involving clean energy products and the reduction of greenhouse gas emissions.
Taxpayers wishing to be considered for an allocation of credit must first submit a concept paper that the IRS and Department of Energy will review based on a number of factors, including project viability, environmental benefits, how the project will strengthen the clean energy supply chain in the US, and community/workforce impacts.
The IRS indicated the submission portal for Round 2 will open no later than May 28, 2024. Once concept papers are submitted, the IRS will issue a letter either encouraging or discouraging the applicant to submit the full Section 48C application — even if applicants receive a letter of discouragement, they are still free to submit a full application. All Round 2 allocation decisions will be made by the IRS by January 15, 2025.
How we can help
CLA’s Clean Energy Tax team can assist your organization throughout the entire Section 48C process — from concept paper to monetization of the awarded credit. Contact us to learn how you can take advantage of this valuable incentive.
