Section 45X Advanced Manufacturing Production Credit

The Sec. 45X Advanced Manufacturing Production Credit was introduced through the passage of the Inflation Reduction Act in 2022 and incentivizes the domestic production of various clean energy components. The tax credit amount varies depending on the type of eligible component produced and sold and the capacity of the product. Components include those for solar energy, wind energy, battery cells and modules, inverters, and applicable critical minerals. This may explicitly include thermal storage and solar thermal components, pending guidance from the Department of Treasury. A facility cannot claim both the 45X and 48C credits. Beginning in 2030 the credit will begin phasing out, reaching 0% in 2033.