Section 48C Tax Credit Solutions
Section 48C Tax Credit Solutions
Baker Tilly can help you navigate Section 48C
Baker Tilly’s Section 48C consultants pair industrial knowledge with a track record of helping clients apply for and win competitive tax credit programs. Our efforts have resulted in more than $15 billion in awarded tax credits for our clients.
Section 48C Advanced Energy Credit is not an entitlement. It will be competitive in each application window. That’s where we can help. Baker Tilly mapped out the Section 48C application steps in our 48C portal so you can involve your team in the process, all in one place. Our portal is where your team and our specialist collaborate from the pre-application phase through the completion of construction.
Unsure of where to start?
Contact our 48C specialists to learn more or visit our portal to get started.
Why apply?
If this is your first time learning about Section 48C, you may be wondering if it is worth the effort to apply. The credit value is up to 30% of your capital investment in a qualified advanced energy project. Projects which could qualify are:
- Equipment that re-equips an industrial or manufacturing facility and is designed to reduce CO2 by more than 20%.
- Facility investments that re-equip, expand or establish an industrial facility for the processing, refining, or recycling of critical materials.
What is available?
Section 48C has $10 billion of total tax credit allocation. The first stage of the application process for the first $4 billion of energy credits under Section 48C opens on May 31, 2023, and closes July 31, 2023. This first stage of the application process will help you quickly get feedback on if your facility investments would be a candidate to obtain a 48C tax credit.
As such, manufacturing leaders sense a fiduciary responsibility to understand the value this tax credit could have on making their processing capabilities more competitive.
Whether you decide to navigate the application process on your own or work with Baker Tilly’s Section 48C specialists, we are encouraging manufacturers with eligible projects to apply.
Additional Inflation Reduction Act resources:
Further guidance released on qualifying advanced energy project credit allocation program
The IRS Notice 2023-44 (Notice) provides further guidance on the application for, and award of, $10 billion in Inflation Reduction Act (IRA) credits.
Top 3 considerations for manufacturers considering applying for Section 48C energy tax credits
The Inflation Reduction Act of 2022, Section 48C Advanced Energy Credit (AEC) is a competitive tax credit program that requires manufacturers apply in order to receive an allocation. The current credit, Section 48C Advanced Energy Credit, includes $10 billion in new 30% investment tax credits and broadens what is deemed to be eligible energy property a company can invest in to earn the credit. The credit value is 30% of the project capital investment that is deemed to be eligible energy property. Explore examples of qualified projects here.
Section 48C: the $10 billion in investment tax credits every manufacturer should know about
Unlike many of the tax credits in the Inflation Reduction Act of 2022, Section 48C Advanced Energy Credit (AEC) is a competitive tax credit program that requires manufacturers apply in order to receive an allocation.
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