Dive Brief:
- The Treasury Department and Internal Revenue Service will issue up to $6 billion in 48C tax credits in a second round of funding set to open later this month, according to an April 29 press release.
- About $2.5 billion of the funding will go to projects in communities directly impacted by the closure of a coal mine or coal-fired power plant.
- The new round of funding builds on last month’s issue of $4 billion in funding from the Qualifying Advanced Energy Project Credit program, meant to incentivize clean energy manufacturing and recycling, industrial decarbonization and critical materials processing, refining and recycling.
Dive Insight:
The 48C portal will open for registration no later than May 28. The deadline for submitting concept papers will be on the 30th day after the 48C portal opens and the department will make allocation decisions by Jan. 15, 2025.
Projects that received round one funding can also apply for round two.
The Treasury Department will evaluate if any tax credits remain unallocated at the close of round two and determine if another allocation round is needed, the notice stated.
Last month, the IRS funded approximately $4 billion for over 100 projects across 35 states. This included $2.7 billion for clean energy manufacturing and recycling projects, $800 million for critical materials recycling, processing and refining and $500 million for industrial decarbonization efforts.
Steelmaker ArcelorMittal, polysilicon manufacturer Highland Materials and lithium battery separator maker Entek were among the biggest recipients in the first round.
