Biden Administration announces first manufacturers to qualify for 48C tax credits

The U.S. Department of Energy (DOE) on April 19 released details for 35 projects across 20 states that voluntarily shared with DOE they received a total of $1.93 billion in allocations of the Qualifying Advanced Energy Project Credit (48C). 48C is an allocated tax credit funded by President Biden’s Investing in America agenda through the Inflation Reduction Act, aimed at accelerating clean energy manufacturing and recycling and reducing greenhouse gas emissions at industrial facilities.

The projects announced today are addressing critical needs across the clean energy economy, including grid components (e.g., transformers), electric vehicle components and chargers, solar components, clean steel, critical materials processing and recycling, and other clean energy products. Seven of the projects announced today are located in traditional energy communities, which include communities with closed coal mines or coal plants — advancing the President’s commitment to invest in the communities that have kept America’s economy powered for generations. In order to receive the full 30% investment tax credit, projects receiving a 48C tax credit must meet prevailing wage and registered apprenticeship requirements.

“The Biden-Harris Administration is executing an industrial strategy that prioritizes rebuilding our domestic manufacturing sector, creating good-paying jobs across the country,” said U.S. Secretary of Energy Jennifer M. Granholm. “Through the historic Advanced Energy Project Credit, we are leveraging the infrastructure, expertise, and grit of America’s energy communities—where the workers that powered our energy past, will power our energy future.”

The IRA expanded the Qualifying Advanced Energy Project Credit (48C) to provide an additional credit allocation of $10 billion, with $4 billion set aside for projects in designated energy communities.

On March 29, 2024, the IRS allocated approximately $4 billion of 48C credits for over 100 projects across 35 states, with approximately $1.5 billion allocated to projects in designated energy communities. As required by statute, the 48C(e) program can release the names of all organizations allocated a credit and the amount of that allocation only after projects are certified, a process that can take up to two years. In advance of that certification, as of April 18, 35 projects voluntarily self-disclosed information to DOE to share publicly as part of today’s announcement.

Many of the recipients fall under electric vehicle manufacturing, but a few are directly related to solar PV:

• Highland Materials — Surgoinsville, Tennessee. This project, which is located in an Energy Community, will initially produce 16,000 Metric Tons per year (MT/year) of solar grade polysilicon at less than standard cost and with a 90% reduction in carbon emissions. At full capacity, it will produce 20,000 MT/year — the equivalent of 11 GW of solar cells. Highland is working closely with Northeast State Community College to develop and implement workforce development including DOL certified apprenticeship programs, along with other community support programs designed to support our workforce and the community at large. [Credit Amount: $255.6 Million]
• SolarCycle — Cedartown, Georgia. SolarCycle is investing in a state-of-the-art $344 million glass plant that will create some of the cleanest solar glass in the world by using recycled glass from retired solar systems as an input. Compared to imported solar glass, this product will reduce trade risk, increase innovation and create benefits for the domestic economy. With support from the Department of Energy, Internal Revenue Service, and the State of Georgia, the advanced process will produce 1,000 metric tons per day (MTD) of rolled, patterned solar glass. [Credit Amount: $64.2 Million]

The U.S. Department of Treasury and Internal Revenue Service anticipate issuing guidance for the second round of the 48C program in the coming weeks, with a submission window for required concept papers anticipated to open by this summer.

Read all of Solar Power World’s domestic manufacturing coverage here. 

News item from the U.S. Dept. of Energy