Clean Energy – 2024 Date Considerations

For those involved with clean energy, 2024 includes some key dates that should be considered when planning investments in the coming year. The following is a quick summary of some of the changes with clean energy credits in 2024:

Inflation Reduction Act – Various Clean Energy Credits

Phasing Out Credits

Clean Energy Credit/Topic	Changes in 2024
Section 30D – Clean Vehicle Credit	The credit is no longer available for those vehicles placed in service by December 31, 2024 that also have “applicable critical minerals in the battery that are extracted, processed, or recycled by a foreign entity of concern.”¹
§45 – Electricity produced from certain renewable resources, etc. (Production Tax Credit)	(1) Credit is only allowed under this section for qualified facilities for which the taxpayer began construction prior to December 31, 2024. (2) Credit is phased to 90% of the otherwise available credit amount if the domestic content requirement is not met, and construction of the facility begins in calendar year 2024.
§48 – Energy Credit (Investment Tax Credit or ITC)	(1) The ITC is not available under this section for the following property types following December 31, 2024: energy storage, qualified biogas, and microgrid controllers. (2) The ITC is not available for the following property that does not begin before January 1, 2025: qualified fuel cell, qualified microturbine, combined heat and power system, qualified small wind energy, waste energy recovery property, solar energy, and certain geothermal energy property. (3) The election to treat qualified facilities under §45 as energy property under §48 no longer applies following December 31, 2024. (4) Credit is phased to 90% of the otherwise available credit amount if the domestic content requirement is not met, and construction of the facility begins in calendar year 2024.

Clean Energy Credit/Topic

Changes in 2024

Section 30D – Clean Vehicle Credit

The credit is no longer available for those vehicles placed in service by December 31, 2024 that also have “applicable critical minerals in the battery that are extracted, processed, or recycled by a foreign entity of concern.”¹

§45 – Electricity produced from certain renewable resources, etc. (Production Tax Credit)

(1) Credit is only allowed under this section for qualified facilities for which the taxpayer began construction prior to December 31, 2024.

(2) Credit is phased to 90% of the otherwise available credit amount if the domestic content requirement is not met, and construction of the facility begins in calendar year 2024.

§48 – Energy Credit (Investment Tax Credit or ITC)

(1) The ITC is not available under this section for the following property types following December 31, 2024: energy storage, qualified biogas, and microgrid controllers.

(2) The ITC is not available for the following property that does not begin before January 1, 2025: qualified fuel cell, qualified microturbine, combined heat and power system, qualified small wind energy, waste energy recovery property, solar energy, and certain geothermal energy property.

(3) The election to treat qualified facilities under §45 as energy property under §48 no longer applies following December 31, 2024.

(4) Credit is phased to 90% of the otherwise available credit amount if the domestic content requirement is not met, and construction of the facility begins in calendar year 2024.

New or Adjusted Credits

Clean Energy Credit	Changes in 2024
§45Y – Clean electricity production credit	Available for facilities placed in service after December 31, 2024.
§48E – Clean electricity investment credit	Credit available for facilities placed in service after December 31, 2024 or a previously placed-in-service facility with new units/additions after December 31, 2024.
§25C – Energy efficient home improvement credit	Product identification number requirement effective for property placed in service after December 31, 2024.^1, ²
§45L – Energy efficient home credit	Different Energy Star Program Requirements for dwelling units acquired after December 31, 2024.

Fuel-Related Clean Energy Credits

Clean Energy Credit	Changes in 2024
§45Z – Clean fuel production credit	(1) Credit applies for fuel produced after December 31, 2024. (2) Alteration and repair requirements for the prevailing wage and apprenticeship requirement apply after December 31, 2024.
§40A – Biodiesel and renewable diesel used as fuel	Credit only applies through December 31, 2024 and then is no longer available.
§6426 – Credit for alcohol fuel, biodiesel, and alternative fuel mixtures	Credit only applies through December 31, 2024 and then is no longer available.
§6427 – Fuels not used for taxable purposes	Biodiesel mixture, alternative fuel, and any qualified mixture of sustainable aviation fuel sold or used after December 31, 2024 no longer applies with this section.
§40(b)(6) – Second generation biofuel credit	Credit is available through December 31, 2024.
§40B – Sustainable aviation fuel credit	The sustainable aviation fuel credit (income tax credit, excise tax credit and outlay payments) does not apply to any sale or use after December 31, 2024.¹

If you have any questions or need assistance, please reach out to a professional at FORVIS.

Find out how these clean energy credits could apply to you! Visit Discovering IRA Clean Energy Tax Credits & Deductions for more details.

1 https://www.jct.gov/publications/2023/jcs-1-23/.
2 As of the publication of this article, there is some discussion about whether this requirement will remain given perceived complexities. FORVIS will provide updates as available.

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