Energy Tax Credit

The Investment Tax Credit provided by Section 48 is set to expire in 2024 and will be replaced in 2025 with the Clean Electricity Investment Tax Credit. The Inflation Reduction Act extends the date of construction in most cases to 2024 and maintains a thirty percent tax credit for solar energy property, geothermal property, fiber-optic solar property, fuel cell property, microturbine property, small wind property, offshore wind property, combined heat and power property, and waste energy property. This tax credit also contains additional unique provisions like applying a ten percent bonus for domestic manufacturing and for projects located in energy communities as well as providing for a thirty percent tax credit for geothermal heat pumps constructed before January 1, 2033.