Clean Electricity Investment Credit (Section 48E)

Key metadata

Document number

irs-clean-electricity-investment-credit-page

Type

Guidance Page

Publication date

2026-01-05

Agencies

Treasury Department, Internal Revenue Service

CFR references

26 CFR part 1

Original source

IRS guidance page

IRS Finalizes Clean Electricity Investment Credit, Effective January 2025

The Clean Electricity Investment Credit (CEIC) is a new, technology-neutral investment tax credit replacing the existing Energy Investment Tax Credit for facilities placed in service after December 31, 2024. This emissions-based incentive directly benefits battery storage and other clean electricity technologies, driving their deployment which in turn impacts grid infrastructure and transmission needs. The base credit is 6% of the qualified investment, but can increase significantly: up to 30% for meeting prevailing wage and apprenticeship requirements, an additional 10 percentage points for domestic content (steel, iron, manufactured products), and another 10 percentage points for locating in an energy community. This makes the credit highly attractive for projects incorporating U.S.-made components and supports advanced manufacturing. Taxpayers, including tax-exempt and government entities (via elective payment/transfer), can claim this credit. The CEIC phase-out begins no earlier than 2032.