Section 48C Advanced Manufacturing Tax Credit

The Sec. 48C Advanced Manufacturing Credit was replenished and expanded by the Inflation Reduction Act in 2022. Available funding totals $10 billion, with $4 billion designated to Energy Communities. Eligibility has been expanded from facilities producing various renewable technologies or fuels to investments in any industrial or manufacturing facility that results in emissions reductions of at least 20%. The base rate of the credit is 6%, with a full 30% awarded if investments meet wage and apprenticeship requirements. The program involves a competitive application process. No credit can be given for an investment that has received credit under Section 48, Section 48A, Section 48B, Section 48E, Section 45Q, and Section 45V. All renewable thermal technologies and fuels could qualify for the 48C credit.