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Inflation Reduction Act: Section 45X advanced manufacturing production credit

Presented By:
Stephen Eckert Dana Hullinger Donny Lucaj
Sept. 19, 2023
View On-Demand
Section 45X, established with the Inflation Reduction Act, is a tax credit for businesses that manufacture and sell energy components. Our tax professionals will discuss this tax credit, including how to qualify and calculating the amount of the credit.
Business professionals walking around manufacturing facility.

The Inflation Reduction Act of 2022 (IRA) established a collection of interrelated tax credits and incentives supporting domestic clean and renewable energy production. However, organizations wishing to participate in the production of such energy require supporting equipment. Fortunately, the IRA also established a crucial new tax credit under Section 45X for businesses that manufacture and sell a variety of energy components.

Taxpayers qualify for the Section 45X credit based on their production of eligible components within the United States and the sale of such components to unrelated persons. Eligible components include solar energy components, wind energy components, a variety of inverters, battery components, or critical minerals. The amount of this credit is calculated through different methods depending on the specific components that are produced and sold. This credit first took effect at the beginning of 2023 (i.e., production and sales occurring after Dec. 31, 2022). However, it has a longer-term horizon with expiration currently slated for the end of 2032.

During this webinar, our IRA professionals will discuss the various categories of energy components, dive deeper into qualifying for the credit, and talk through calculating the amount of the credit and monetization options.

Learning objectives:

  • Develop an understanding of the Section 45X advanced manufacturing production credit.
  • Identify how your organization could take advantage of the Section 45X tax credit with various monetization options afforded through the IRA.
  • Define potential next steps for your organization as it relates to the Section 45X advanced manufacturing production credit. 

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