⚡ Clean Energy Tax Credits: Sections 48E / 45Y and 48 / 45 

Powering the Future with Strategic Tax Incentives 

CFO Services is your trusted partner in navigating the evolving landscape of clean energy tax credits. With the passage of the One Big Beautiful Bill Act (OBBB) and recent IRS guidance, Sections 48E, 45Y, 48, and 45 offer powerful incentives for renewable energy developers, utilities, and investors—but also introduce complex compliance and eligibility requirements. 

About R&D🔍 Overview of 48E / 45Y and 48 / 45 Credits 

Section 48E – Clean Electricity Investment Tax Credit (ITC) 

  • Type: Investment-based credit 
  • Base Rate: 6% of qualified investment 
  • Bonus Rate: Up to 30% if facility output <1MW or meets Prevailing Wage & Apprenticeship (PWA) requirements 
  • Eligibility: Zero GHG-emission facilities or energy storage placed in service after Dec. 31, 2024 
  • Phaseout Begins: 2032 (non-solar and non-wind) 
  • Transferable: Yes 
  • Refundable: Only for tax-exempt entities 

Section 45Y – Clean Electricity Production Tax Credit (PTC) 

  • Type: Production-based credit 
  • Base Rate: $0.003/kWh 
  • Bonus Rate: $0.015/kWh (adjusted for inflation) 
  • Eligibility: Zero GHG-emission facilities placed in service after Dec. 31, 2024 
  • Phaseout Begins: 2032 (non-solar and non-wind) 
  • Transferable: Yes 
  • Refundable: Only for tax-exempt entities 

Section 48 – Investment Tax Credit for Energy Property 

  • Type: Investment-based credit 
  • Base Rate: 6% (up to 30% with PWA) 
  • Eligibility: Solar, geothermal, wind, fuel cells, microturbines, energy storage, etc. 
  • Expires: End of 2024 (unless construction begins before 2025) 

Section 45 – Renewable Electricity Production Tax Credit 

  • Type: Production-based credit 
  • Base Rate: $0.003/kWh 
  • Bonus Rate: $0.015/kWh 
  • Eligibility: Qualified facilities placed in service before Jan. 1, 2025 
  • Expires: End of 2024 

📜 Legislative Updates & Restrictions 

  • OBBB Act (P.L. 119-21) accelerates phaseouts for wind and solar projects under 48E and 45Y: 
    • Projects must begin construction within 12 months of enactment or be placed in service by Dec. 31, 2027
    • Domestic content thresholds increase annually: 45% (2025), 50% (2026), 55% (2027+) 
    • Prohibited Foreign Entity (PFE) rules restrict sourcing from entities tied to China, Russia, Iran, or North Korea 
    • 100% recapture applies if payments are made to PFEs within 10 years of service date 
    • Transferability is prohibited to PFEs 
  • IRS Revenue Procedure 2025-14 outlines eligible technologies for 45Y/48E: 
    • Wind, solar, geothermal, nuclear fission/fusion, marine/hydrokinetic, waste energy recovery 

📜 Updated Phaseout Section for 48E / 45Y Credits 

Phaseout Begins: 

  • For wind and solar projects, the phaseout is accelerated under the OBBB Act and recent executive order: 
    • Facilities must begin construction within 12 months of enactment or be placed in service by December 31, 2027 to qualify  
    • These technologies will be ineligible for 48E/45Y credits starting in 2028  
  • For non-wind and non-solar technologies—including  energy storage, geothermal, biomass, hydroelectric: 
    • Projects may begin construction through the end of 2033 to qualify for full-rate technology-neutral credits. 
    • Credits will phase down for projects starting construction in 2034 and 2035  

🛠️ Our Services: End-to-End Clean Energy Credit Consulting 

CFO Services offers a full suite of consulting solutions to help you maximize your credit value while ensuring full compliance with IRS, DOE, and Treasury requirements. 

✅ Eligibility Assessment 

  • Evaluate facility qualification under 48E/45Y and 48/45 
  • Analyze emissions thresholds, facility status, and domestic content compliance 
  • Determine bonus eligibility via PWA and apprenticeship standards 

📊 Credit Calculation & Documentation 

  • Analyze investment basis and production metrics 
  • Prepare IRS forms, audit-ready workpapers, and tax position papers 
  • Support lifecycle emissions modeling and GREET analysis 

🔁 Monetization & Transfer Support 

 

  • Manage IRS pre-filing registration for direct pay or transfer elections 
  • Track submissions and respond to IRS inquiries 
  • Ensure compliance with PFE restrictions and recapture rules 

🧾 Compliance & Audit Readiness 

  • Develop documentation frameworks for wage and apprenticeship tracking 
  • Conduct quarterly reviews and third-party verification (ISO14065) 
  • Prepare for IRS and DOE audits with full support 

🛡️ FEOC Rules Review & Risk Mitigation 

  • Assess exposure to Prohibited Foreign Entities (PFEs) under Sections 48E and 45Y 
  • Review supply chain sourcing and licensing agreements for compliance 
  • Calculate material assistance cost ratios and advise on thresholds 
  • Support documentation for ownership, control, and payment structures 
  • Advise on transfer restrictions and recapture risk mitigation 
  • Monitor evolving guidance and legislative updates impacting FEOC eligibility 

💼 Why Choose CFO Services? 

  • Specialized Expertise: Decades of experience in federal energy credits, IRS compliance, and DOE applications 
  • Integrated Tools: Proprietary software and AI agents streamline data tracking and reporting 
  • Scalable Solutions: Tailored support for single-site projects or multi-state portfolios 
  • Proven Results: Clients have secured hundreds of millions in federal and state incentives 

📣 Next Step 

The clean energy credit landscape is shifting rapidly. With tighter deadlines, stricter sourcing rules, and enhanced compliance requirements, timing and precision are everything. 

Contact CFO Services today to schedule a consultation and begin your journey toward optimized clean energy incentives.