Clean Energy Tax Credits Can Keep Record U.S. Investment Going

(WASHINGTON – Jan 7, 2025) Today, the IRS unveiled the final guidance for new technology-neutral clean electricity credits, known as 45Y and 48E. The guidance replaces and harmonizes existing credits, so that zero-emission electricity producing facilities can qualify. Additionally, the new tax credits extend the timeline for eligibility, providing long-term certainty for clean energy developers and investors.

“There’s no question: Clean energy is benefiting our health, our wallets and our futures. 

“It’s curbing harmful pollution in communities, lowering electricity bills for homes and businesses, and driving job opportunities in red and blue states.

“These commonsense tax credits will keep record clean energy investment in America going, while helping drive down planet-heating pollution. The only way the U.S. can sustain a competitive and resilient 21st century economy is by harnessing its homegrown wind and solar resources.” 

• Pam Kiely, Associate Vice President, U.S. Climate

Background:

• The certainty around these tax credits has been vital in spurring $261 billion in announced investments for utility-scale clean energy projects since the passage of the Inflation Reduction Act in 2022.
• U.S. jobs in clean energy grew 4.2% from 2022 to 2023, more than double the speed of the overall economy at 2.0%, according to Aurora Energy Research.
• The tax credits can help cut emissions from the power sector by 43-73% in 2035 (compared to 2022 levels), according to Rhodium analysis.
• Removal of the tax credits would put at risk 31,000 jobs by 2030 and at least 103,000 jobs by 2040, according to Aurora Energy Research.