Qualifying Advanced Energy Manufacturing Investment Tax Credit (Federal)

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Last modified on February 12, 2015.

Financial Incentive Program

Place United States

Name Qualifying Advanced Energy Manufacturing Investment Tax Credit
Incentive Type Industry Recruitment/Support
Applicable Sector Commercial, Industrial, Manufacturing
Eligible Technologies Clothes Washers/Dryers, Dishwasher, Refrigerators, Water Heaters, Lighting, Lighting Controls/Sensors, Chillers, Heat pumps, Central Air conditioners, Heat recovery, Programmable Thermostats, Energy Mgmt. Systems/Building Controls, Duct/Air sealing, Windows, Roofs, Custom/Others pending approval, Solar Water Heat, Solar Thermal Electric, Solar Thermal Process Heat, Photovoltaics, Wind, Geothermal Electric, Fuel Cells, Geothermal Heat Pumps, Renewable Fuels, Fuel Cells using Renewable Fuels, Microturbines, Yes; specific technologies not identified, Tankless Water Heaters, LED Lighting
Active Incentive No
Implementing Sector Federal
Energy Category Renewable Energy Incentive Programs, Energy Efficiency Incentive Programs
Amount 30% of qualified investment

Start Date 2009-02-17

Funding Source The American Recovery and Reinvestment Act of 2009

Maximum Incentive 30 million

Program Budget 2013: $150 million ($2.3 billion total)

Program Administrator U.S. Internal Revenue Service and U.S. Department of Energy
Website https://eere-exchange.energy.gov/#FoaIdcf1c50e7-2b9f-4b29-9cfa-6aa737dd60ec

References DSIREDatabase of State Incentives for Renewables and Efficiency[1]


2013 Update: Phase II of the Qualifying Advanced Energy Project is open. Required concept papers are due to the U.S. Department of Energy (DOE) by April 9, 2013. The U.S. DOE will review concept papers and select which companies will be allowed to submit a full application. Applications are due July 23, 2013. Concept papers and applications must follow guidelines and are to be submitted electronically via the EERE eXCHANGE web site (see web link above).

The American Recovery and Reinvestment Act of 2009 established an investment tax credit to encourage the development of a U.S.-based renewable energy manufacturing sector. The investment tax credit is equal to 30% of the qualified investment required for an advanced energy project that establishes, re-equips or expands a manufacturing facility that produces any of the following:

  • Equipment and/or technologies used to produced energy from the sun, wind, geothermal or "other" renewable resources
  • Fuel cells, microturbines or energy-storage systems for use with electric or hybrid-electric motor vehicles
  • Equipment used to refine or blend renewable fuels
  • Equipment and/or technologies to produce energy-conservation technologies (including energy-conserving lighting technologies and smart grid technologies)*

Qualified investments generally include personal tangible property that is depreciable and required for the production process. Other tangible property may be considered a qualified investment only if it is an essential part of the facility, excluding buildings and structural components.

Based on recommendations from the U.S. DOE, the U.S. Treasury Department (Treasury) will issue certifications for qualified investments eligible for credits to qualifying advanced energy project sponsors. After certification is granted, the taxpayer has one year to provide additional evidence that the requirements of the certification have been met and three years to put the project in service. There are provisions for credit recapture for non-compliance. There is a total of $150 million available for this phase of the Advanced Energy Manufacturing Tax Credit program.

In determining which projects to certify, the U.S. DOE and Treasury must consider those which most likely will be commercially viable, provide the greatest domestic job creation, provide the greatest net reduction of air pollution and/or greenhouse gases, have great potential for technological innovation and commercial deployment, have the lowest levelized cost of generated (or stored) energy or the lowest levelized cost of reduction in energy consumption or greenhouse gas emissions, and have the shortest project time.

Any taxpayer receiving this credit may not also receive the federal business energy investment tax credit.

* This credit could be expanded in the future to include other energy technologies that reduce greenhouse gas emissions, as determined by the U.S. Treasury Department.

Incentive Contact

Contact Name Marc Bernabo
Department IRS
Division Section 48C Phase II Program

Place Washington D.C., United States
Phone (713) 209-3669

Authorities (Please contact the if there are any file problems.)

Authority 1: 26 USCS § 48C
Date Effective 2009-02-17
Date Enacted 2009-02-17

Authority 2: IRS Notice 2013-12 Qualifying Advanced Energy Project Credit Phase II
Date Effective 2013-02-07
Date Enacted 2013-02-07

  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]


  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency" Cite error: Invalid <ref> tag; name "DSIRE" defined multiple times with different content