September 2023
The qualifying advanced energy project credit, found in § 48C of the Internal Revenue Code (IRC), provides a tax credit for investments in clean energy production. Section 45X of the IRC creates the advanced manufacturing production credit, which provides tax credits for the production and sale of clean energy components. Depending on their circumstances, businesses involved in clean energy production may benefit from either credit. This article reviews the two tax credit programs and offers suggestions on how businesses can decide between the two.
