CPA Practice Advisor
Summary
The Treasury Department and the IRS finalized rules on Jan. 7 for the Clean Electricity Investment and Production Tax Credits—also known as the “technology-neutral credits”— in sections 45Y and 48E of the tax code.
Both tax credits are intended to encourage more investments in clean energy systems over the next few years.
The Clean Electricity Investment Tax Credit lowers the cost of clean energy infrastructure installations. Projects that generate 1 megawatt hour of clean power or less get a base credit that covers 30% of the project cost, with larger projects getting 6% of the project value, according to a fact sheet.
This credit covers clean power technologies, including solar, wind, municipal solid waste, geothermal, tidal, energy storage, microgrid controllers, fuel cells, combined heat and power systems, microturbines, and interconnection costs.
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