Section 48E Clean Electricity Investment Tax Credit
Investment tax credit up to 30% (plus bonuses) for businesses installing clean electricity generation and storage.
About this program
Section 48E is the technology-neutral business investment tax credit that replaced the legacy ITC for projects beginning construction in 2025 and later. Eligible technologies include solar, wind, geothermal, nuclear, hydropower, marine and hydrokinetic, and standalone battery storage. The base credit is 30% if prevailing wage and apprenticeship rules are met (6% otherwise), plus bonus adders for domestic content, energy community location, and low-income community location. Under the One Big Beautiful Bill Act, solar and wind projects must begin construction by July 4, 2026 or be placed in service by December 31, 2027 to qualify; storage, geothermal, and nuclear keep the credit through 2033 with phaseout in 2034-2035.
Eligibility
For-profit businesses (and tax-exempt entities via direct pay) that own qualifying clean electricity generation or storage property placed in service in the U.S. New 2026 FEOC restrictions limit eligibility if components or financing come from Prohibited Foreign Entities.
Requirements
- Confirm technology and project size are eligible under Section 48E
- Begin construction before July 4, 2026 for solar/wind (or be placed in service by 12/31/2027)
- Meet Davis-Bacon prevailing wage and apprenticeship rules for full 30%