Federal Energy & Infrastructure Tax Credit Resources
Navigating federal energy tax credits can be complex. This resource guide breaks down the key credits available under the Inflation Reduction Act and the One Big Beautiful Budget Act (OBBBA), including production tax credits (PTCs), investment tax credits (ITCs), and transferable credits under §6418.
Whether you're a developer, investor, or corporate tax buyer, use this page to quickly compare credit types, eligibility requirements, bonus adders, and availability windows across clean energy, manufacturing, and fuel technologies.
Credit Type
Production
Tax Credit
Technology
Electricity
Eligibility
Wind, biomass, geothermal, solar, small irrigation, landfill/trash, hydropower, marine/hydrokinetic facilities
Base Rate
~$0.0055/kWh
Full Rate
~$0.0275/kWh
Bonus Adders
- Energy Community: +10%
- Domestic Content: +10%
Duration
10 years from placed-in-service date
Period of Availability
Construction must have begun before 1/1/2025. Replaced by §45Y for projects starting 2025+.
Transferable (§6418)
Yes
Key Limitations & Notes
- Cannot stack with §48
- Legacy credit (IRA-extended)
- Inflation-adjusted annually
Credit Type
Production
Tax Credit
Technology
Electricity
Eligibility
Technology-neutral: any facility generating electricity with GHG emissions rate ≤ zero
Base Rate
~$0.0055/kWh
Full Rate
~$0.0275/kWh
Bonus Adders
- Energy Community: +10%
- Domestic Content: +10%
- (stricter OBBBA sourcing rules)
- Nuclear Energy Community adder (new)
Duration
10 years from placed-in-service date
Period of Availability
Projects placed in service after 12/31/2024.
Wind/Solar: Construction before 7/5/2026 with 4-yr safe harbor, OR construction after 7/4/2026 and placed in service before 1/1/2028.
Other tech: Construction before 1/1/2036 with 4-yr safe harbor. Phasedown: 75% (2034), 50% (2035).
Transferable (§6418)
Yes
Key Limitations & Notes
- Cannot stack with §48E or §45Q
- Subject to FEOC restrictions (Taxpayer & Material Assistance)
- Inflation-adjusted annually
Credit Type
Investment
Tax Credit
Technology
Electricity /
Storage
Eligibility
Fuel cell, solar, geothermal, small wind, energy storage, biogas, microgrid controllers, combined heat & power
Base Rate
6% of
eligible basis
Full Rate
30% of
eligible basis
Bonus Adders
- Energy Community: +10 pp
- Domestic Content: +10 pp
- Low-Income: +10–20 pp
- (IRS allocation; wind/solar <5 MW)
Duration
Upfront credit on capital investment
Period of Availability
Construction must have begun before 1/1/2025.
Exception: Geothermal heat pumps eligible for construction beginning before 1/1/2035 (OBBBA extension).
Replaced by §48E for projects starting 2025+.
Transferable (§6418)
Yes
Key Limitations & Notes
- Cannot stack with §48E, §45, §45Y, §48C, or §45Q
- 5-year recapture per §50 (decreases 20%/yr)
- OBBBA eliminated the permanent 10% minimum ITC
- No inflation adjustment
!– §48E — ITC – Clean Electricity Investment (Tech-Neutral) –>
Credit Type
Investment
Tax Credit
Technology
Electricity /
Storage
Eligibility
Technology-neutral: facilities with GHG emissions ≤ zero, plus qualified energy storage properties
Base Rate
6% of
eligible basis
Full Rate
30% of
eligible basis
Bonus Adders
- Energy Community: +10 pp
- Domestic Content: +10 pp
- (stricter OBBBA rules)
- Low-Income: +10–20 pp
- (IRS allocation; wind/solar <5 MW)
Duration
Upfront credit on capital investment
Period of Availability
Replaces §48 for projects placed in service after 12/31/2024.
Wind/Solar: Construction before 7/5/2026 with 4-yr safe harbor, OR construction after 7/4/2026 and placed in service before 1/1/2028.
Other tech (e.g., storage): Construction before 1/1/2036 with 4-yr safe harbor. Phasedown: 75% (2034), 50% (2035).
Transferable (§6418)
Yes
Key Limitations & Notes
- Cannot stack with §48, §45, §45Y, §48C, or §45Q
- 5-year recapture per §50
- Additional 10-year recapture for FEOC effective control violations
- Subject to FEOC restrictions (Taxpayer & Material Assistance)
- No inflation adjustment
Credit Type
Investment
Tax Credit
Technology
Vehicles /
Infrastructure
Eligibility
EV charging and refueling property for ethanol, natural gas, hydrogen, biodiesel
Base Rate
6% of
property cost
Full Rate
30% of
property cost
Bonus Adders
N/A
Duration
Upfront credit
Period of Availability
Must be placed in service between 1/1/2023 and 6/30/2026 (OBBBA shortened from 12/31/2032).
Transferable (§6418)
Yes
Key Limitations & Notes
- Must be in eligible low-income or rural census tract
- Capped $100K/item
- Recapture if property ceases eligibility
Credit Type
Production
Tax Credit
Technology
Electricity
Eligibility
Electricity from qualified existing nuclear power facilities
Base Rate
0.3¢/kWh
(subject to
phase-out)
Full Rate
1.5¢/kWh
(subject to
phase-out)
Bonus Adders
N/A
Duration
2024 through 2032
Period of Availability
Electricity produced and sold through 12/31/2032.
Transferable (§6418)
Yes
Key Limitations & Notes
- Phase-out as market price rises
- Gov't zero-emission subsidies reduce credit
- PWA not required for full rate
- After 12/31/2027: must certify nuclear fuel not sourced from covered nations
- Subject to FEOC/PFE restrictions
- Inflation-adjusted
Credit Type
Production
Tax Credit
Technology
Electricity /
Industrial
Eligibility
CO₂ sequestration with geologic storage or enhanced oil recovery (EOR) within the U.S.
Base Rate
Pre-7/4/2025 facilities:
Sequest.: $17/ton
DAC: $36/ton
EOR: $12/ton
Post-7/4/2025 facilities:
$17/ton (all uses)
DAC: $36/ton
Full Rate
Pre-7/4/2025 facilities:
Sequest.: $85/ton
DAC: $180/ton
EOR: $60/ton
Post-7/4/2025 facilities:
$85/ton (all uses)
DAC: $180/ton
Bonus Adders
- N/A
- (OBBBA equalized rates across sequestration and EOR end uses)
Duration
12 years from placed-in-service date
Period of Availability
Facilities must begin construction before 1/1/2033.
Transferable (§6418)
Yes
Key Limitations & Notes
- Cannot stack with §45V, §45Z, §48, §48C, or §48E
- Min
- capture volumes apply
- 3-yr recapture if CO₂ leaks
- Subject to FEOC/PFE restrictions
- Inflation-adjusted for facilities placed in service after 12/31/2026
Credit Type
Production
Tax Credit
Technology
Fuels
Eligibility
Domestic production of clean transportation fuels incl. SAF. Must emit ≤50 kg CO₂e/mmBTU.
Base Rate
2025:
Non-aviation: $0.20/gal
Aviation: $0.35/gal
(× emissions factor)
2026–2029:
$0.20/gal (all fuels)
(× emissions factor)
Full Rate
2025:
Non-aviation: $1.00/gal
Aviation: $1.75/gal
(× emissions factor)
2026–2029:
$1.00/gal (all fuels)
(× emissions factor)
Bonus Adders
N/A
Duration
5 years
(2025–2029)
Period of Availability
Fuels produced after 12/31/2024 and used/sold before 12/31/2029 (OBBBA extended from 2027).
Transferable (§6418)
Yes
Key Limitations & Notes
- Cannot stack with §45V or §45Q
- From 1/1/2026: feedstock must be produced/grown in US, Mexico, or Canada
- Subject to FEOC/PFE restrictions
- Inflation-adjusted
Credit Type
Production
Tax Credit
Technology
Fuels
Eligibility
Clean hydrogen at qualified U.S. facility, tiered by lifecycle GHG emissions
Base Rate
Up to $0.60/kg
(varies by
emissions tier)
Full Rate
Up to $3.00/kg
(varies by
emissions tier)
Bonus Adders
N/A
Duration
10 years from placed-in-service date
Period of Availability
Must begin construction before 1/1/2028 (OBBBA accelerated from 1/1/2033).
Transferable (§6418)
Yes
Key Limitations & Notes
- Cannot stack with §45Q, §45Z, or §48C
- May elect §48 ITC instead
- Inflation-adjusted
- OBBBA significantly shortened eligibility window
Credit Type
Investment
Tax Credit
Technology
Manufacturing
Eligibility
Facilities manufacturing clean energy equipment, reducing industrial GHG emissions, or processing critical minerals
Base Rate
6% of eligible
investment
Full Rate
30% of eligible
investment
Bonus Adders
N/A
Duration
Upfront credit
Period of Availability
Competitive, application-based. Available until funding pool exhausted. Enhanced by OBBBA.
Transferable (§6418)
Yes
Key Limitations & Notes
- Cannot stack with §45X, §48, §48E, §45Q, or §45V
- Standard recapture per §50
- OBBBA: forfeited allocations cannot be reissued
- No inflation adjustment
Credit Type
Production
Tax Credit
Technology
Manufacturing
Eligibility
Domestic manufacturing of solar/wind components, inverters, battery components, critical minerals, and metallurgical coal (new via OBBBA)
Base Rate
Component-specific
(e.g., $35/kWh battery,
$0.07/W solar, 10%
critical minerals)
Full Rate
Same as base
(no PWA
requirement)
Bonus Adders
N/A
Duration
Other components: Phasedown from 2030 (75%→50%→25%→0%), sunset after 2032.
Wind: Sunset before 1/1/2028 (OBBBA accelerated).
Critical minerals: Phasedown from 2031 (75%→50%→25%), sunset after 2033.
Metallurgical coal: 2026–2029.
Period of Availability
Components produced 2023+. Wind components: must be sold before 1/1/2028 (OBBBA). Other components: before 1/1/2033. Critical minerals: before 1/1/2034. Metallurgical coal: 1/1/2026–12/31/2029.
Transferable (§6418)
Yes
Key Limitations & Notes
- Cannot claim at §48C-credited facilities
- No PWA requirement
- Not inflation-adjusted
- OBBBA: integrated components must be made in same factory with ≥65% US-sourced materials
- Subject to FEOC restrictions (Taxpayer & Material Assistance)
Credit Type
Production
Tax Credit
Technology
Fuels
Eligibility
Small agri-biodiesel producers (≤60M gal/yr) producing biodiesel from virgin oils
Base Rate
$0.20/gallon
Full Rate
$0.20/gallon
(no PWA
requirement)
Bonus Adders
N/A
Duration
Fuel produced and sold between 6/30/2025 and 12/31/2026
Period of Availability
Available for fuels sold between 6/30/2025 and 12/31/2026 (OBBBA extension).
Transferable (§6418)
Yes
Key Limitations & Notes
- Producer cannot exceed 60M gallons/year
- Must be from virgin oils
- Not inflation-adjusted
- New OBBBA-extended credit
Credit Type
Investment
Tax Credit
Technology
Vehicles
Eligibility
Commercial purchases of qualified electric and fuel cell vehicles
Base Rate
Up to 30% of
vehicle cost (or
incremental cost
vs. gas equivalent)
Full Rate
Same as base
(no PWA
requirement)
Bonus Adders
N/A
Duration
Upfront credit
Period of Availability
OBBBA accelerated phase-out timeline (originally through 1/1/2033, now shortened).
Transferable (§6418)
No
Key Limitations & Notes
- NON-TRANSFERABLE
- Cap: $7,500 (<14,000 lbs) / $40,000 (>14,000 lbs)
- Must be utilized by acquiring taxpayer