30% tax credit, but only for property in an eligible census tract. An eligible census tract for this credit includes low-income communities as defined under §45D(e).

$27.50/MWh for 2022, adjusted for inflation thereafter

$85 Credit per metric ton of qualified carbon oxide captured and sequestered (and $85 for geological sequestration aka “point source”). Credit can be claimed for carbon oxide captured during the 12-year period beginning on the date a qualified facility was originally placed in service.

Credit of $3 + $15 (if meets wage and apprenticeship guidelines), adjusted for inflation, per MWh of electricity generated.

Credit of up to $3 per kilogram (kg) based on the life-cycle greenhouse gas emissions rate of CO2 produced at a qualifying facility during the facility’s first 10 years of operation. 

Variety of credit amounts depending on the underlying technology (we’ll follow up with a more detailed post on this at a later date).

Beginning in 2025, the traditional ITC and PTC will generally no longer apply.

They will be replaced by new technology-neutral credits. Eligibility for these credits generally requires that the facility's GHG emissions are no greater than zero.

The 45Y base credit value is 0.3 cents per kWh with a bonus credit (base credit multiplied by five) if prevailing wage and apprenticeship requirements are met.

For these facilities the applicable amount ranges from $0.12 to $0.60 per kilogram of qualified clean hydrogen produced. If the qualified clean hydrogen facility meets the prevailing wage and apprenticeship requirements, the credit amount is multiplied by five, resulting in an applicable amount that ranges from $0.60 to $3.00 per kilogram of clean hydrogen produced. The applicable amount is adjusted annually for inflation.

The IRA extends the ITC for solar energy property and most other ITC-eligible property until the end of 2024 (Geothermal credit will be extended until 2035).

Like the PTC, the ITC will transition to technology-neutral in 2025.The IRA expands what is eligible for the ITC, including standalone energy storage technology.

Base tax credit is 6 percent, with a bonus credit of 30 percent, if prevailing wage and apprenticeship requirements are met. Guidance has been published here for this, and we will be publishing a note on prevailing wage and apprenticeship requirements.

In addition to the Wage & Apprenticeship Standards, additional 8-10% adders are available for Domestic Content, Energy Communities, and Low Income Communities. Guidance is pending from IRS on qualifying details, but we are prepared to size these adders for 2023 credits subject to guidance confirmation.

This credit will be available for a wide range of renewable energy equipment manufacturing facilities. Base tax credit is 6 percent, with a bonus credit of 30 percent, if prevailing wage and apprenticeship requirements are met. This is to motivate and support the domestic content requirements as well. 

As in the case of 45Y, beginning in 2025, the traditional ITC and PTC will generally no longer apply. They will be replaced by new technology-neutral credits. Eligibility for these credits generally requires that the facility's GHG emissions are no greater than zero.