Taxpayers who produce or invest in clean electricity may be eligible to claim the Clean Electricity Production Credit (Sec. 45Y) with respect to a facility or the Clean Electricity Investment Credit (Sec. 48E) with respect to a facility or energy storage technology, as applicable, that is placed in service after 2024. These credits replace the Production Tax Credit (Sec. 45) and Investment Tax Credit (Sec. 48) starting in 2025. The new credits under Sec. 45Y and Sec. 48E are technology neutral with qualification determined by greenhouse gas (GHG) emissions rates. IRS final regulations (TD 10024) provide rules for determining GHG emissions rates resulting from the production of electricity, petitioning for provisional emissions rates, and determining eligibility for the credits. The final regulations affect all taxpayers who claim the Clean Electricity Production Credit with respect to a qualified facility or the Clean Electricity Investment Credit with respect to a qualified facility or energy storage technology.

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