Your Guide for Round Two of Section 48C Tax Credit Applications

The concept paper submission portal for the Qualifying Advanced Energy Project Credit Program under Internal Revenue Code Section 48C opened on May 22, 2024, with a concept paper deadline of June 21, 2024.

Project applicants will receive a letter of encouragement or discouragement from the Department of Energy (DOE) following concept paper submission, after which some will then assemble and submit applications. Though $6 billion of the total $10 billion in available 48C tax credits remain, the application process is expected to be more competitive than in Round One as newcomers join previous applicants in seeking the tax credit.

Because of this increased competition, applicants in priority project areas, which include clean energy manufacturing and recycling, industrial decarbonization, and the handling of critical materials, will need to communicate their project’s eligibility clearly in their concept papers and applications. Applicants also need to demonstrate the project’s alignment with the credit’s clean energy goals by rating highly in each of the DOE’s four technical review criteria:

• Commercial viability
• Greenhouse gas (GHG) emissions impact
• Workforce and community engagement
• U.S. supply chains and domestic manufacturing impact

Successful candidates will need to submit an application that clearly explains why the 48C tax credit is critical to their project’s success and how their project will have a positive impact on the sustainable manufacturing industry.

Applying for Round Two and don’t know where to start? Answer the questions below for guidance on how to prepare a strong 48C concept paper and application.