Federal Transferable Production Tax Credits

This newly established tech-neutral production tax credit replaces the Renewable Electricity Production Tax Credit once it phases out at the end of 2024. The tax credit is an emissions-based incentive that is neutral and flexible between clean electricity technologies. Other tax credit features include a construction extension for geothermal, wind, closed-loop biomass, open-loop biomass, landfill gas, municipal solid waste, hydropower, and marine and hydrokinetic facilities to the land. The credit amount of 1.5 cents per kilowatt hours can receive 10 percent bonus for meeting certain domestic manufacturing requirements for raw materials and for facilities located in energy communities. The tax credit creates a credit amount of 1.5 cents per kilowatt hours of electricity produced and sold or stored at facilities placed into service after 2024 with zero or negative greenhouse gas emissions. The credit amount can be enhanced by 10 percent for projects located in energy communities, for meeting domestic manufacturing requirements, and for projects located in low-income areas (20 percent bonus for low-income economic benefit projects or on Tribal land).