Policy
The Investment Tax Credit (ITC) is a U.S. federal tax credit based on a percentage of an eligible clean energy project’s qualified investment. For facilities placed in service after 2024, the technology-neutral Clean Electricity Investment Credit under Section 48E generally applies to qualified zero-emissions electricity facilities and energy storage. Earlier projects may fall under legacy Section 48 rules. The credit can reduce a project owner’s federal income tax liability and therefore improve project economics. The available percentage is not automatically 30%: it depends on the applicable statute, construction and placed-in-service dates, prevailing wage and apprenticeship rules, possible bonus credits, ownership, sourcing restrictions, and other eligibility requirements. Because the rules and deadlines change, investors should evaluate the tax assumptions in each project’s current offering materials and consult a qualified tax professional.