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Inflation Reduction Act — Enacted August 2022

Federal Clean Energy Tax Credits Under the IRA

The Inflation Reduction Act deployed over $370 billion in clean energy incentives across seven major tax credit programs. Here is a complete guide to every federal credit, who qualifies, and how to stack them.

Scan My Project for All 7 Credits
$370B+
IRA Clean Energy Spend
7
Major Credit Programs
10 Years
Production Credit Window
70%
Max ITC with Adders

All Seven Federal IRA Credits

Select any credit to read a detailed guide with eligibility requirements, rates, bonus adders, and step-by-step claim instructions.

§45LSection 45L

New Energy Efficient Home Credit

Contractors and developers building energy-efficient new single-family or multifamily homes can claim a credit per qualified unit. The IRA raised rates significantly from the pre-IRA $2,000 cap.

Credit Rate
$2,500 (Energy Star) / $5,000 (Zero Energy Ready)
Residential ConstructionMultifamily
Full guide
§179DSection 179D

Commercial Building Energy Efficiency Deduction

A tax deduction for energy-efficient improvements to commercial buildings. The IRA expanded eligibility to include nonprofits and government entities that can now allocate the deduction to designers.

Credit Rate
$0.50–$5.00/sq ft (prevailing wage required for maximum)
CommercialNonprofitGovernmentIndustrial
TransferablePW Bonus AvailableFull guide
§ITCSection 48 / 48E
Most Used

Investment Tax Credit

The flagship clean energy tax credit. The IRA extended the ITC through 2032 and added bonus adders for energy communities, domestic content, and low-income projects.

Credit Rate
30% base + up to 40% in bonus adders
SolarWindStorageGeothermalFuel Cell
Transferable Direct PayPW Bonus AvailableFull guide
§PTCSection 45 / 45Y
Most Used

Production Tax Credit

A per-kilowatt-hour credit for electricity produced from clean energy sources. Projects must choose between ITC and PTC — IncentEdge models both scenarios to maximize your credit value.

Credit Rate
Inflation-adjusted annually; 0.3¢/kWh without prevailing wage
WindSolarGeothermalHydroMarine
Transferable Direct PayPW Bonus AvailableFull guide
§48CSection 48C

Advanced Manufacturing Tax Credit

A $10 billion IRA allocation for manufacturers of clean energy equipment. Applications are submitted through a competitive IRS/DOE review process in annual allocation rounds.

Credit Rate
30% base; 6% without prevailing wage/apprenticeship
Solar ManufacturingWind ManufacturingBatteryEVsEfficiency
Direct PayPW Bonus AvailableFull guide
§45QSection 45Q

Carbon Capture & Sequestration Credit

The IRA doubled credit rates and significantly lowered capture thresholds, unlocking carbon capture economics for a much broader set of industrial and power generation projects.

Credit Rate
$85/ton geologic; $60/ton utilization; $180/ton DAC
IndustrialPower GenerationDirect Air Capture
Transferable Direct PayPW Bonus AvailableFull guide
§45VSection 45V

Clean Hydrogen Production Credit

A 10-year production credit for clean hydrogen based on lifecycle greenhouse gas emissions. Projects with the lowest emissions (under 0.45 kg CO2e/kg H2) receive the full $3.00/kg.

Credit Rate
Tiered by lifecycle emissions: $0.60–$3.00/kg
Green HydrogenBlue HydrogenElectrolysisSMR + CCS
Transferable Direct PayPW Bonus AvailableFull guide

Credit Stacking Rules

Most IRA credits can be layered together — but a few are mutually exclusive. IncentEdge models every combination automatically.

ITC and PTC are mutually exclusive — choose one per project
45L can stack with state energy efficiency incentives
179D can be claimed alongside ITC for the same building
45V can stack with ITC on electrolysis equipment
48C cannot stack with ITC/PTC for the same property
45Q is compatible with ITC when CCS is a separate system

Stack Every IRA Credit Your Project Qualifies For

IncentEdge runs every credit simultaneously and calculates the optimal stacking strategy for your project — in under 60 seconds.

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