March 2023
Congress created the Advanced Energy Project Credit program in 2009 to provide tax credits for sponsors of qualifying advanced energy projects (QAEPs) that generate clean energy, improve energy efficiency, reduce pollution and pursue other “green energy” goals. The original program allocated $2.3 billion for credits. While this amount has long since run out, the Inflation Reduction Act of 2022 amended the statute to provide an additional $10 billion in tax credits for QAEPs. The guidance document, Notice 2023-18, includes information on how the IRS will allocate the funds and how QAEP sponsors in the U.S. manufacturing industry can apply, starting with a letter to the Department of Energy.
