Section 45Y Clean Electricity Production Tax Credit
Technology-neutral production tax credit per kWh for clean electricity sold from facilities placed in service in 2025 and later.
About this program
Section 45Y provides a per-kilowatt-hour production tax credit (1.5 cents adjusted for inflation when prevailing wage and apprenticeship are met) for electricity sold to unrelated parties from new zero-emission facilities. Eligible facilities include solar, wind, geothermal, nuclear, hydropower, marine and hydrokinetic. Like 48E, solar and wind face the OBBBA accelerated timeline (begin construction by July 4, 2026 or place in service by December 31, 2027). Domestic content, energy community, and low-income adders increase the credit. Credits are transferable for cash and qualified entities can elect direct pay.
Eligibility
Owners of new zero-emission electricity generation facilities placed in service in the U.S. Subject to FEOC restrictions beginning in 2026.
Requirements
- Confirm facility produces electricity with zero greenhouse gas emissions
- Place facility in service after December 31, 2024
- Meet prevailing wage and apprenticeship for full credit value