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48C Qualifying Advanced Energy Project Tax Credit

A recap, update, and next steps for a $10 billion investment

On January 10, 2025, the Internal Revenue Service announced six billion in allocations in the second round of the 48C Qualifying Advanced Energy Project Tax Credit, a 30 percent investment tax credit. The 48C program, originally established by the American Recovery and Reinvestment Act of 2009, was expanded with a $10 billion investment under section 13501 of the Inflation Reduction Act.

Program Scope:

The second-round announcement marks the full allocation of the $10 billion expansion, which includes approximately 250 projects spanning over 40 states and total project investments of more than $44 billion. Projects selected in the second round alone are estimated to generate 30,000 construction jobs over four years, 10,000 of which are located in energy communities. 

Program Objectives and Requirements:

The objective of the 48C program is to fund critical projects that:

  • Expand US clean energy manufacturing and recycling capacity
  • Expand US critical materials processing and refining capacity
  • Drive process efficiency and reduce greenhouse gas emissions at US industrial facilities

To receive the 30 percent investment tax credit, all projects must meet the prevailing wage and apprenticeship requirements. Additionally, at least four billion of the $10 billion must be allocated to projects in designated 48C energy communities, including communities with closed coal facilities.

A comparison of each round:
Round 1Round 2
Announcement DateMarch 29, 2024January 10, 2025
Total Amount Allocated$4 billion$6 billion
Amount Allocated to 48C Energy Communities$1.5 billion$2.5 billion
Concept Papers ReceivedConcept papers requested nearly $42 billion in tax credits800 concept papers requested over $40 billion in tax credits
Full Applications Received250 applications requesting > $13.5 billion350 applications requesting > $16 billion in tax credits
Clean energy manufacturing and recycling$2.7 billion (67%)$3.8 billion (63%)
Critical materials recycling, processing, and refining$800 million (20%)$1.5 billion of $6 billion (25%)
Industrial decarbonization$500 million (13%)$700 million of $6 billion (12%)
Industrial Decarbonization:

Industrial decarbonization projects represented 12 percent of round one and 13 percent of round two awards. Multiple sectors received awards in both rounds. Recipients will deploy a range of emissions-reducing technologies, including heat pumps, electric boilers, thermal storage, low-carbon fuels, feedstocks, and energy sources. Both rounds experienced outsized demand from industry.

Looking Ahead

The next four years are significant, as claiming the 48C tax credit can take up to four years and depends on meeting the following milestones.

  • First, the allocated projects must meet the certification requirements within two years of receiving an allocation letter. After the certification process, project information will be made public, although projects can self-disclose sooner.  
  • Then, projects must meet the placed-in-service requirements within an additional two years.
  • If the project is placed in service within the required two-year period and DOE has been notified, the taxpayer may claim the 48C credit on the income tax return for the taxable year in which the project was placed in service.

The Initiative supports investments such as the 48C tax credit because they catalyze substantial private capital and provide critical support to US industry. These types of programs ensure that US manufacturing remains innovative, competitive, and a reliable source of well-paying jobs, all while revitalizing towns and cities across the country. The Initiative looks forward to collaborating with Congress to develop additional investment opportunities and policy innovations that further support American industrial advancements.

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Labor Engagement Manager for Industrial Innovation and Carbon Management, GPI

Alejandro comes to GPI from Labor Union SEIU-United Service Workers West. He represented union workers from downtown Los Angeles and LA’s westside corridor of Century City, Westwood, and Beverly Hills. Alejandro enforced various collective bargaining agreements for union workers, ensuring annual wage increases, health insurance, and other benefits and protections. In addition, he worked with union leaders and outside stakeholders, such as community partners, public agencies, politicians, and industry experts, to develop and execute union campaigns. Alejandro was also part of the Los Angeles-Justice for Janitors 2021 union contract campaign—he helped execute and coordinate large-scale actions across LA’s metropolitan area. Previously, he served as the Nevada state canvassing director at For Our Future Action Fund. He holds a BA in international studies and Italian from the University of Kansas.

Senior Program Coordinator for Industrial Innovation and Carbon Management, GPI

Carrie Danner joined the Great Plains Institute in 2023 and serves as the operations coordinator for the Industrial Innovation and Carbon Management team. In her work, she supports all projects within the program to elevate operations, particularly in grant-making and event planning. Carrie earned a bachelor’s degree from Knox College in environmental studies. Prior to joining GPI, she supported programs at the Conservation Corps of Minnesota & Iowa as their member experience administrator.

Industry Program Coordinator, GPI

Alana joined GPI in 2024 as a program associate on the Industrial Innovation and Carbon Management team, specifically supporting the Industrial Innovation Initiative, where she helps to advance industrial decarbonization through GPI’s consensus-building approach. Alana previously worked as an account executive at Jamf, where she helped current K-12 education customers improve and scale the management and security of their Apple device deployments. Alana has spent most of her professional years working with Minnesota nonprofits, including two years as an AmeriCorps member with Twin Cities Habitat for Humanity. She holds a bachelor’s degree in community environmental studies from the University of Wisconsin-Eau Claire.

Zachary Byrum, Research Analyst, WRI

Zachary Byrum is a Research Analyst in WRI's U.S. Climate Program, where he provides technology and policy analysis for carbon removal and deep decarbonization. His work focuses on pathways to reduce industrial emissions as well as bolstering technological carbon removal. Prior to WRI, Zach was a research assistant in the Carbon Management Research Initiative at the Center on Global Energy Policy. In the preceding years, he served as White House Intern in the National Economic Council under the Obama Administration and then an assistant analyst at the Congressional Budget Office. Zach holds a Master of Public Administration in Environmental Science and Policy from the School of International and Public Affairs at Columbia University and a B.A. in Economics and Political Science from Goucher College.

Senior Advisor of Industrial Innovation, WRI United States

Angela Anderson is the Director of Industrial Innovation and Carbon Removal in the Climate Program. She leads WRI's growing portfolio of work in industrial decarbonization and carbon removal and aims to change narratives around “hard-to-abate” sectors and promote the natural and technological interventions required to achieve net-zero targets. Prior to joining WRI, Angela worked as a program director, coalition builder, international advocate, and campaign strategist. She led the Climate and Energy Program at the Union of Concerned Scientists for ten years; facilitated US-NGO engagement in the international climate negotiations while at US Climate Action Network and at the Pew Environmental Trust; and founded Clear the Air, a national coalition to reduce pollution from power plants. Angela holds a B.A. in political science from Colorado State University.

Vice President of Industrial Innovation and Carbon Management, GPI

Patrice Lahlum is the Vice President of the Industrial Innovation and Carbon Management program at the Great Plains Institute. The Institute, headquartered in Minneapolis, MN, works with diverse stakeholders and communities across the country to transform the energy system to benefit people, the economy, and the environment. We strive to combine our unique consensus-building approach, expert knowledge and analysis, and local action to promote solutions that strengthen communities, shore up the nation’s industrial base, and enhance domestic energy independence, all while eliminating carbon emissions. Patrice oversees several initiatives, including the Carbon Capture Coalition, Industrial Innovation Initiative, Carbon Action Alliance, and the Regional Carbon Capture Deployment Initiative.

Senior Content Specialist for Industrial Innovation and Carbon Management, GPI

Kate Sullivan joined the Great Plains Institute in 2019. As Senior Content Specialist, Kate uses her analytical and design skills to provide research, writing, and logistical support across the Industrial Innovation and Carbon Management team. Prior to joining GPI, Kate worked as an Energy Counselor in the Center for Energy and Environment’s residential department, assisting homeowners with their energy needs and providing resources for efficiency upgrades. Kate earned her BA in Biology from St. Olaf College with an emphasis in Environmental Studies.

Senior Program Manager for Industrial Innovation and Carbon Management, GPI

Jill Syvrud joined the Great Plains Institute in 2017 and serves as the program manager for the Industrial Innovation and Carbon Management Program. In addition to overseeing the overall program, Jill directly supports the Industrial Innovation Initiative, a coalition advancing decarbonization solutions for the Midcontinent region’s most important industrial sectors. Jill earned a bachelor of science in biology from the University of Wisconsin–Eau Claire and a master of science degree in science technology and environmental policy from the University of Minnesota’s Humphrey School of Public Affairs. Jill’s past experience includes multiple graduate research assistantships concentrating on technology innovation and sustainable megacities, as well as a previous position as an administrative and outreach coordination intern with the Midwest Renewable Energy Association.