IRS Finalizes Investment Tax Credit Regulations
To qualify for increased tax credits, an energy project must satisfy or be exempt from the prevailing wage rules. Projects with a maximum net output of less than one megawatt are
To qualify for increased tax credits, an energy project must satisfy or be exempt from the prevailing wage rules. Projects with a maximum net output of less than one megawatt are
Tax credits that remain available well into the 2030s (such as Section 48E for energy storage); and Permanent options for “full expensing” that accelerate tax write-offs of
Unlike solar and wind, which had their construction cutoff dates moved up, BESS projects will remain eligible for the investment tax credit (ITC) and production tax credit (PTC)
This guide breaks down the latest tax code changes impacting projects beginning in 2025 and beyond, including Section 48E, prevailing wage and apprenticeship rules, safe harbor
The Final Regulations answered taxpayer questions on the eligibility requirements for biogas and standalone energy storage. The Final Regulations also modify the prevailing
Investment Tax Credit and Production Tax CreditEnvironmental Justice Wind and Solar Capacity Limitations Under Section 48Tax Credit MonetizationClean Energy Production Tax Credit and Clean Energy Investment Tax CreditAdditional ResourcesStarting January 1, 2025, the Inflation Reduction Act replaces the traditional PTC with the Clean Energy Production Tax Credit (§1 3701) and the traditional ITC with the Clean Electricity Investment Tax Credit (§ 13702). These tax credits are functionally similar to the ITC/PTC but is not technology-specific. It applies to all generation facilities...See more on epa.gov
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These new tax credit opportunities under the Inflation Reduction Act substantially enhance the financial incentives for deploying energy storage systems, both at residential and
Through at least 2025, the Inflation Reduction Act extends the Investment Tax Credit (ITC) of 30% and Production Tax Credit (PTC) of $0.0275/kWh (2023 value), as long as
Provides a tax deduction for the cost of energy eficiency improvements to commercial buildings, installed as part of the building envelope; interior lighting systems; or the heating, cooling,
The energy storage industry has continued to progress over the course of 2024 and into 2025, buoyed in significant part by the federal income tax benefits in the form of tax credits
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