IRS Notice 2023-18

Part III - Administrative, Procedural, and Miscellaneous

Initial Guidance Establishing Qualifying Advanced Energy Project Credit Allocation
Program Under Section 48C(e)

Notice 2023-18
SECTION 1. PURPOSE
.01 This notice establishes the program under § 48C(e)(1) of the Internal
Revenue Code (Code) 1 to allocate $10 billion of credits ($4 billion of which may be
allocated only to projects located in certain energy communities) for qualified
investments in eligible qualifying advanced energy projects (§ 48C(e) program). The
goal of the § 48C(e) program is to expand U.S. manufacturing capacity and quality jobs
for clean energy technologies (including production and recycling), to reduce
greenhouse gas emissions in the U.S. industrial sector, and to secure domestic supply
chains for critical materials (including specified critical minerals) that serve as inputs for
clean energy technology production.
.02 This notice and its appendices provide the initial program guidance for the
§ 48C(e) program. The Department of the Treasury (Treasury Department) and the
Internal Revenue Service (IRS) intend to issue a supplemental notice and appendices

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Unless otherwise specified, all “section” or “§” references are to sections of the Code.

(additional § 48C(e) program guidance) by May 31, 2023.
.03 The Treasury Department and the IRS anticipate providing at least two
allocation rounds under the § 48C(e) program. For the first allocation round (Round 1)
of the § 48C(e) program, which will begin on May 31, 2023, the Treasury Department
and the IRS anticipate allocating $4 billion of qualifying advanced energy project credits
(§ 48C credits) with approximately $1.6 billion in § 48C credits to be allocated to
projects located in certain energy communities. Although the Treasury Department and
the IRS intend to allocate a total of $10 billion of § 48C credits with not less than
$4 billion of § 48C credits to projects located in certain energy communities over the
duration of the § 48C(e) program, depending upon applications received, the Treasury
Department and the IRS may not allocate exactly 40 percent of the total § 48C credits
allocated in Round 1 to projects located in certain energy communities. To be
considered for an allocation of § 48C credits in the § 48C(e) program for Round 1,
taxpayers must submit concept papers to the Department of Energy (DOE) by July 31,
2023. Following submission of a concept paper, DOE will encourage or discourage
taxpayers from submitting a joint application for DOE recommendation and for IRS
§ 48C(e) certification (§ 48C(e) application).
SECTION 2. BACKGROUND
.01 For purposes of the § 38 general business credit, § 46 provides that the
amount of the investment credit for any taxable year is the sum of the credits listed in
§ 46. That list includes the § 48C credit, which was originally enacted by § 1302(b) of
the American Recovery and Reinvestment Act of 2009 (2009 Act), Public Law 111-5,
Division B, Title I, Subtitle D, 123 Stat. 115, 345 (February 17, 2009), to provide an
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allocated credit for qualified investments in qualifying advanced energy projects.
.02 In addition to certain amendments made by the Tax Increase Prevention Act
of 2014, Public Law 113-295, 128 Stat. 4010 (December 19, 2014), § 48C was most
recently amended by § 13501 of Public Law 117-169, 136 Stat. 1818 (August 16, 2022),
commonly known as the Inflation Reduction Act of 2022 (IRA). Section 13501(a) of the
IRA added § 48C(e) to the Code to extend the § 48C credit and to provide an additional
credit allocation of $10 billion. Section 13501(b) of the IRA modified the definition of a
“qualifying advanced energy project” contained in § 48C(c)(1)(A). Section 13501(c) and
(d) of the IRA made conforming amendments to § 48C(c)(2)(A) and (f). The
amendments made by § 13501 of the IRA became effective on January 1, 2023. See
§ 13501(e) of the IRA.
.03 Section 48C(a) provides that the § 48C credit for any taxable year is an
amount equal to a certain percentage of the qualified investment (as defined in
§ 48C(b)) for such taxable year with respect to any qualifying advanced energy project
(as defined in § 48C(c)(1) and section 3.01 of this notice) of the taxpayer. The § 48C
credit generally is allowed in the taxable year in which the eligible property (as defined
in § 48C(c)(2) and section 3.03 of this notice) is placed in service (as defined in section
3.04 of this notice). For purposes of § 48C credit allocations under the § 48C(e)
program, § 48C(e)(4)(A) provides a base credit rate of 6 percent of the qualified
investment. In the case of any project which satisfies the requirements of
§ 48C(e)(5)(A) and (6) (prevailing wage and apprenticeship requirements),
§ 48C(e)(4)(B) provides an alternative rate of 30 percent of the qualified investment.
See section 4 of this notice.
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.04 Section 48C(b)(1) provides that the qualified investment for any taxable year
is the basis of eligible property that is placed in service by the taxpayer during such
taxable year and is part of a qualifying advanced energy project.
.05 Section 48C(b)(3) provides that the amount which is treated as the qualified
investment for all taxable years with respect to any qualified advanced energy project
must not exceed the amount designated by the Secretary as eligible for the § 48C
credit.
.06 Section 48C(e)(1) directs the Secretary of the Treasury or her delegate
(Secretary) to establish the § 48C(e) program to consider and award certifications for
qualified investments eligible for § 48C credits to qualifying advanced energy project
sponsors.
.07 Section 48C(e)(2) provides that the total amount of § 48C credits which may
be allocated under the § 48C(e) program may not exceed $10 billion, of which not
greater than $6 billion may be allocated to qualified investments which are not located
within census tracts that-(1) Prior to August 16, 2022 (the date of enactment of § 48C(e)), had no project
that received a certification and allocation of credits under the § 48C(d) allocation
program established under the 2009 Act, and
(2) Are described in § 45(b)(11)(B)(iii) as one of the following:
(a) a census tract in which a coal mine has closed after December 31, 1999;
(b) a census tract in which a coal-fired electric generating unit has been retired
after December 31, 2009; or
(c) a census tract directly adjoining a census tract described in section 2.07(2)(a)
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or (b) of this notice.
.08 Section 48(C)(e)(3)(A) provides that each applicant for certification must
submit an application at such time and containing such information as the Secretary
may require.
.09 Section 48C(e)(3)(B) provides that each applicant for certification has 2 years
from the date of acceptance by the Secretary of the § 48C(e) application during which to
provide to the Secretary evidence that the requirements of the certification have been
met.
.10 Section 48C(e)(3)(C) provides that an applicant who receives a certification
has 2 years from the date of issuance of the certification to place the project in service
and to notify the Secretary that such project has been so placed in service. If the
project is not placed in service within the 2-year period, then the certification is no
longer valid. If any certification is revoked under § 48C(e)(3), the total amount of the
credits that may be allocated under § 48C(e)(2) is increased by the amount of § 48C
credits with respect to such revoked certification.
.11 Section 48C(e)(3)(D) provides that in the case of an applicant which receives
a certification, if the Secretary determines that the project has been placed in service at
a location that is materially different than the location specified in the § 48C(e)
application for such project, the certification is no longer valid.
.12 The at-risk rules provided by § 49, the credit recapture and other special
rules provided in § 50, and pursuant to § 48C(b)(2), rules regarding qualified progress
expenditures (similar to the rules of § 46(c)(4) and (d) (as in effect on the day before the
enactment of the Revenue Reconciliation Act of 1990)) apply for purposes of the § 48C
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credit.
SECTION 3. DEFINITIONS
The following definitions apply solely for purposes of the § 48C(e) program:
.01 Qualifying Advanced Energy Project. The term qualifying advanced energy
project means a project that meets the following requirements:
(1) the project:
(a) re-equips, expands or establishes an industrial or a manufacturing facility (as
defined in sections 3.05 and 3.06 of this notice) for the production or recycling of
specified advanced energy property (as defined in section 3.02 of this notice) (see
Appendix A for more information regarding these definitions);
(b) re-equips any industrial or manufacturing facility, with equipment designed to
reduce greenhouse gas emissions by at least 20 percent through the installation of—
(i) low- or zero-carbon process heat systems;
(ii) carbon capture, transport, utilization and storage systems;
(iii) energy efficiency and reduction in waste from industrial processes; or
(iv) any other industrial technology designed to reduce greenhouse gas
emissions, as determined by the Secretary (see Appendix A for more information
regarding these definitions); or
(c) re-equips, expands or establishes an industrial facility for the processing,
refining or recycling of critical materials (as defined in § 7002(a) of the Energy Act of
2020) (see Appendix A for more information regarding these definitions);
(2) the Secretary has certified pursuant to § 48C(e)(3) that part or all of the
qualified investment in the qualifying advanced energy project is eligible for a § 48C
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credit; and
(3) the project does not include any portion of a project for the production of any
property that is used in the refining or blending of any transportation fuels (other than
renewable fuels).
.02 Specified Advanced Energy Property. The term specified advanced energy
property means any of the following:
(1) property designed for use in the production of energy from the sun, water,
wind, geothermal deposits (within the meaning of § 613(e)(2)), or other renewable
resources;
(2) fuel cells, microturbines, or energy storage systems and components;
(3) electric grid modernization equipment or components;
(4) property designed to capture, remove, use, or sequester carbon oxide
emissions;
(5) equipment designed to refine, electrolyze, or blend any fuel, chemical, or
product which is renewable, or low-carbon and low-emission;
(6) property designed to produce energy conservation technologies (including
residential, commercial, and industrial applications);
(7) light-, medium-, or heavy-duty electric or fuel cell vehicles, as well as
technologies, components, or materials for such vehicles, and associated charging or
refueling infrastructure;
(8) hybrid vehicles with a gross vehicle weight rating of not less than 14,000
pounds as well as technologies, components, or materials for such vehicles; or
(9) other advanced energy property designed to reduce greenhouse gas
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emissions as may be determined by the Secretary.
See Appendix A for more information regarding these definitions.
.03 Eligible Property. The term eligible property means any property that meets
the following requirements:
(1) the property is necessary for the production or recycling of specified
advanced energy property described in § 48C(c)(1)(A)(i) (and section 3.02 of this
notice), re-equipping an industrial or manufacturing facility described in
§ 48C(c)(1)(A)(ii) (and section 3.01(1)(b) of this notice), or re-equipping, expanding, or
establishing an industrial facility described in § 48C(c)(1)(A)(iii) (and section 3.01(1)(c)
of this notice).
(2) the property is:
(a) tangible personal property; or
(b) other tangible property (not including a building or its structural components)
that is used as an integral part of the qualifying advanced energy project.
(3) depreciation (or amortization in lieu of depreciation) is allowable with respect
to the property.
.04 Placed In Service. (1) In general. Eligible property (as defined in § 48C(c)(2)
and section 3.03 of this notice) is placed in service in the earlier of the following taxable
years:
(A) The taxable year in which, under the taxpayer’s depreciation practice, the
period for depreciation with respect to such eligible property begins; or
(B) The taxable year in which the eligible property is placed in a condition or state
of readiness and availability for a specifically assigned function, whether in a trade or
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business or in the production of income.
.05 Industrial Facility. The term industrial facility means a facility that produces,
processes, or refines materials or products from raw or manufactured inputs.
.06 Manufacturing Facilities. The term manufacturing facility means a facility that
makes or processes raw materials into finished products (or accomplishes any
intermediate stage in that process).
.07 Recycling Facility. The term recycling facility means a facility that:
(1) reclaims, recovers, or otherwise processes waste materials (including, but not
limited to, property and components of property at end-of-service), the result of which is
a useful product or material for use in the manufacture of a useful product; or
(2) performs an activity or series of activities in the processes described in
section 3.07(1) of this notice.
SECTION 4. PREVAILING WAGE AND APPRENTICESHIP REQUIREMENTS
.01 Prevailing Wage Requirement
(1) Pursuant to § 48C(e)(5)(A), to meet the prevailing wage requirements, a
taxpayer must ensure that any laborers and mechanics employed by the taxpayer or
any contractor or subcontractor in the re-equipping, expansion, or establishment of a
manufacturing facility that is part of a qualifying advanced energy project are paid
wages at rates not less than the prevailing rates for construction, alteration, or repair of
a similar character in the locality in which such project is located as most recently
determined by the Secretary of Labor. See section 3 of Notice 2022-61, 87 F.R. 73580
(Nov. 30, 2022), for additional information regarding the prevailing wage requirements.
(2) In accordance with § 48C(e)(5)(B), a taxpayer that fails to satisfy the
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prevailing wage requirements for any laborer or mechanic employed by the taxpayer or
any contractor or subcontractor in the re-equipping, expansion, or establishment of a
manufacturing facility that is part of a qualifying advanced energy project will be deemed
to have satisfied the prevailing wage requirement if the taxpayer:
(a) makes a payment to any such laborer or mechanic employed by the taxpayer
or any contractor or subcontractor in the re-equipping, expansion, or establishment of a
manufacturing facility in an amount equal to the sum of the difference between the
amount of wages paid to such laborer or mechanic and the amount of wages required to
be paid to such laborer or mechanic (three times the sum of back wages due in the
case of intentional disregard), plus interest on such difference at the underpayment rate
established under § 6621 (substituting “6 percentage points” for “3 percentage points“ in
§ 6621(a)(2)) and
(b) makes a payment to the Secretary of $5,000 ($10,000 in the case of
intentional disregard) multiplied by the number of laborers and mechanics who were
paid wages below the prevailing wage for any period during such year.
.02 Apprenticeship Requirements
(1) In accordance with § 48C(e)(6) and rules similar to § 45(b)(8), to meet the
apprenticeship requirements, taxpayers must ensure that not less than 10 percent,
12.5 percent, or 15 percent (depending on the beginning of construction date) of the
total labor hours for the construction, alteration or repair work must be performed by
qualified apprentices. The labor hours requirement is subject to the apprentice-tojourney worker ratios of the Department of Labor or applicable State apprenticeship
agency. In addition, each taxpayer, contractor, or subcontractor who employs 4 or more
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individuals to perform construction, alteration or repair work related to re-equipping,
expanding, or establishing an industrial or manufacturing facility must employ 1 or more
qualified apprentices to perform the work. See section 4 of Notice 2022-61 for
additional information about the apprenticeship requirements.
(2) A taxpayer will not be treated as failing to satisfy the apprenticeship
requirements if the taxpayer satisfies either of the following:
(a) The taxpayer pays a penalty to the Secretary in the amount of $50 ($500 if
the failure is due to intentional disregard) multiplied by the total labor hours for which the
taxpayer failed to meet the apprenticeship requirements, or
(b) The taxpayer made a good faith effort in accordance with section 4.01 of
Notice 2022-61.
.03 Credit Rate Conditioned Upon Prevailing Wage and Apprenticeship
Requirements.
(1) A taxpayer that satisfies the prevailing wage and apprenticeship requirements
may claim a credit that is equal to 30 percent of the taxpayer’s qualified investment for
such taxable year with respect to any qualified energy project.
(2) A taxpayer that fails to satisfy the prevailing wage and apprenticeship
requirements generally may only claim a credit equal to 6 percent of the taxpayer’s
qualified investment for such taxable with respect to any qualified advanced energy
project. However, such a taxpayer may claim a credit equal to 30 percent of the
taxpayer’s qualified investment for such taxable year with respect to any qualified
advanced energy project if:
(a) In the event the taxpayer failed to meet the prevailing wage requirements, it
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pays the correction and penalty amounts related to such failure to satisfy the prevailing
wage requirements as described in section 4.01(2) of this notice; or
(b) In the event the taxpayer failed to meet the apprenticeship requirements, it
pays the penalty amount related to such failure to satisfy the apprenticeship
requirements or meets the good faith effort exception described in section 4.02(2) of this
notice.
(3) See section 5.07 of this notice for information regarding when an applicant
must declare whether it will meet the prevailing wage and apprenticeship requirements
for § 48C.
SECTION 5. SECTION 48C(e) PROGRAM
.01 In General. The IRS will consider a project under the § 48C(e) program only
if DOE provides a recommendation and ranking for the project (DOE recommendation)
to the IRS. DOE will provide a recommendation and ranking only if it determines that
the project has a reasonable expectation of commercial viability and merits a
recommendation based on the criteria provided in the additional § 48C(e) program
guidance. See section 5.03(3) of this notice for additional information regarding DOE
recommendations.
.02 Program Timeline. Generally, the § 48C(e) program will proceed as follows:
(1) A taxpayer submits a concept paper to DOE through the eXCHANGE portal,
an online application portal used by DOE available at https://infrastructureexchange.energy.gov/ (or any successor interface) (eXCHANGE portal). See
Appendix B for additional information.
(2) DOE reviews the concept paper and sends the taxpayer a letter encouraging
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or discouraging the submission of a § 48C(e) application. After receiving a letter of
encouragement or discouragement from DOE, the taxpayer determines whether to
submit a § 48C(e) application. All taxpayers who submit concept papers are eligible to
submit a § 48C(e) application, regardless of DOE’s response to its concept paper.
(3) Taxpayers submit § 48C(e) applications through the eXCHANGE portal. See
Appendix B for additional information.
(4) DOE reviews the § 48C(e) applications for compliance with eligibility and
other threshold requirements.
(5) If the § 48C(e) application complies with all eligibility and threshold
requirements, DOE conducts a technical review of the application to form a DOE
recommendation.
(6) DOE provides a recommendation to the IRS regarding the acceptance or
rejection of each § 48C(e) application and a ranking of the applications.
(7) The IRS makes a decision regarding the acceptance or rejection of each
§ 48C(e) application based on DOE’s recommendation and ranking and notifies each
taxpayer that submitted a § 48C(e) application of the outcome by sending a letter
allocating § 48C credits in the case of an acceptance (Allocation Letter) or letter denying
the requested allocation in the case of a rejection (Denial Letter). In the case of an
acceptance, the amount of § 48C credits allocated to a project will also be based on the
taxpayer’s qualified investment in the qualifying advanced energy project and whether
the taxpayer intends to apply for and receive an allocation of § 48C credits calculated at
the 30 percent credit rate (see section 5.07 of this notice). A taxpayer that receives a
Denial Letter may be eligible to request a debriefing in accordance with the criteria set
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forth in section 5.03(9) of this notice.
(8) Within 2 years of receiving an Allocation Letter, a taxpayer must notify DOE
that the certification requirements have been met by submitting this information through
the eXCHANGE portal. See Appendix B for additional information.
(9) DOE notifies the taxpayer and the IRS that it has received the taxpayer’s
notification that the certification requirements have been met.
(10) The IRS certifies the project by sending a letter (Certification Letter).
(11) Within 2 years of receiving the Certification Letter, the taxpayer notifies DOE
that the project has been placed in service by submitting such information through the
eXCHANGE portal. See Appendix B for additional information. A taxpayer that does
not notify DOE that it has placed the project in service within the required 2-year period
will forfeit § 48C credits allocated to the taxpayer for such project.
(12) DOE notifies the taxpayer and the IRS that it has received the taxpayer’s
notification that the project has been placed in service or notification that the taxpayer
will not place the project in service within the required 2-year period.
(13) If the taxpayer has placed the project in service within the required 2-year
period and has notified DOE, the taxpayer claims the § 48C credit on its income tax
return for the taxable year in which the project was placed in service. If the taxpayer has
not placed the project in service within the required 2-year period or has not notified
DOE that the project has been placed in service within the required 2-year period, then
the § 48C credit allocated to the taxpayer’s project is forfeited.
.03 Program Specifications.
(1) For each project that a taxpayer sponsors, the taxpayer must submit the
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following to request a credit allocation:
(a) A concept paper for DOE consideration;
(b) A § 48C(e) application.
(2) A taxpayer must submit a concept paper as specified in section 6 of this
notice through the eXCHANGE portal. See Appendix B for additional information. This
portal will allow applicants to securely input their data and information for review by
DOE and the IRS.
A taxpayer that receives a letter of discouragement in response to a submitted
concept paper may still submit a § 48C(e) application in accordance with the additional
§ 48C(e) program guidance. Receiving such a letter does not disqualify a taxpayer from
submitting a § 48C(e) application but represents DOE’s feedback that the project is
unlikely to receive a recommendation based on the information provided in the concept
paper.
(3) DOE’s recommendation provided to the IRS will include a ranking of projects
in descending order (that is, first, second, third, etc.). See section 5.06 of this notice for
additional information regarding DOE recommendations with respect to projects located
in § 48C(e) Energy Communities Census Tracts (as defined in section 5.06 of this
notice). The amount of credit allocated to a project reduces the amount of credit
available to the remaining pool of recommended projects. The IRS will make
allocations to successive projects according to DOE recommendations and ranking until
the amount available for allocation is exhausted. The amount of § 48C credits allocated
to a project will be based on the taxpayer’s qualified investment in the qualifying
advanced energy project and whether the taxpayer intends to apply for and receive an
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allocation of § 48C credits calculated at the 30 percent credit rate (see section 5.07 of
this notice). DOE will recommend and rank projects only to the extent necessary to
exhaust the amount available for allocation in each § 48C(e) program allocation round.
(4) For Round 1 of the § 48C(e) program, the application period begins on May
31, 2023, and ends on the date by which § 48C(e) applications must be submitted as
specified in additional § 48C(e) program guidance (end of the application period). Any
§ 48C(e) application submitted through the eXCHANGE portal after May 31, 2023, and
on or before the date that ends the application period will be deemed to be submitted by
the taxpayer on the date that ends the application period.
(5) For Round 1 of the § 48C(e) program, a concept paper for DOE consideration
must be submitted by July 31, 2023. The § 48C(e) application (as defined in section
5.02(3) of this notice) must be submitted by the date specified in additional § 48C(e)
program guidance. If a project meets the preliminary compliance review criteria (as
specified in section 6.01 of this notice), DOE will determine the merits of the project and
(for projects determined to be meritorious) provide DOE recommendation to the IRS
(6) Each applicant will receive an electronically generated confirmation of receipt
upon submission of (a) the concept paper and (b) the § 48C(e) application. The
timeliness of submission of the § 48C(e) application will be determined by the submittal
date and time shown on the confirmation of receipt.
(7) For Round 1 of the § 48C(e) program, the IRS will send each applicant an
Allocation Letter in the case of an acceptance or a Denial Letter in the case of a
rejection and will also notify DOE.
(8) If the taxpayer’s § 48C(e) application is accepted, the IRS will determine the
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amount of the § 48C credit allocated to the project and the Allocation Letter will state the
amount of the credit allocated to the project. The date of the Allocation Letter will be
treated as the date of acceptance by the Secretary of the taxpayer’s § 48C(e)
application for purposes of establishing the time to meet criteria for certification as
required by § 48C(e)(3)(B).
(9) Upon request, DOE will offer a debriefing to an applicant that submitted a
§ 48C(e) application (after submitting a concept paper and being encouraged to submit
such § 48C(e) application) and subsequently, was not allocated a credit in Round 1 of
the § 48C(e) program. Debriefings will not be available to applicants that receive a
letter of discouragement. Debriefings will be held by DOE after the application period
ends. Requests for a debriefing must be received by DOE no later than 30 business
days from the date of the Denial Letter issued to the applicant. The sole purpose of the
debriefing is to provide DOE's impression of the strengths and weaknesses of the
rejected § 48C(e) application to enable applicants to improve § 48C(e) applications for
future rounds of the § 48C(e) program or § 48C credit allocation programs.
(10) The Allocation Letter applies only to the taxpayer who requested it. Any
successor in interest may request that the IRS, by letter, transfer the credit allocation for
the project to the successor in interest. The due date for making this request with the
IRS is no later than 30 days prior to the due date (including extensions) of the
successor in interest’s Federal income tax return for the taxable year in which the
transfer occurs.
The successor’s letter must be signed by a person who meets the requirements
of section 7.02(2) of this notice. The successor’s letter should provide:
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(a) the name of the transferor and its TIN;
(b)the name and TIN of the successor’s parent (if any) if the successor files a
return as a member of a consolidated group;
(c) DOE control number, and project name and location;
(d) the successor’s tax name and its TIN;
(e) the successor’s contact telephone number; and
(f) copy of binding contract of the transfer;
(g) a statement that there is no significant change from the application
information provided by the transferor, including that the project has not been placed in
service at a location which is materially different than the location specified in the
application for such project.
The successor’s letter must include a signed attestation using the language from
section 7.02(1) of this notice (replacing “submission” with “letter”), be signed by a
person who meets the requirements of section 7.02(2) of this notice, and should include
the name, title, and contact information (address, phone number, fax number (if
available), and email address) of the signer.
The successor in interest must submit the letter through the eXCHANGE portal. .
The IRS will review the taxpayer’s request and determine whether to transfer the
project’s allocation to the successor in interest and will notify the successor in interest
by letter of its decision. If the project’s credit allocation is not transferred to the
successor in interest, the following rules apply:
(a) In the case of an interest acquired at or before the time the qualifying
advanced energy project is placed in service, any credit allocated to the project will be
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fully forfeited (and rules similar to the recapture rules of § 50(a) apply with respect to
qualified progress expenditures); and
(b) In the case of an interest acquired after the qualifying advanced energy
project is placed in service, the project ceases to be investment credit property and the
recapture rules of § 50(a) (and similar rules with respect to qualified progress
expenditures) apply.
(11) The additional § 48C(e) program guidance will provide further details of the
information required to be submitted to DOE in an application for DOE recommendation.
The additional § 48C(e) program guidance will also provide additional details regarding
the process for applying for DOE recommendation and the instructions for filing concept
papers and applications for DOE recommendation.
.04 Limitation on Qualified Investment. A taxpayer’s qualified investment in a
qualified advanced energy property is limited to the basis of eligible property (as defined
in § 48C(c)(2) and section 3.03 of this notice).
.05 Denial of Double Benefit.
(1) In general. Section 48C(f) provides that a credit is not allowed under § 48C
for any qualified investment for which a credit is allowed under §§ 48, 48A, 48B, 48E,
45Q, or 45V. If the IRS determines a credit has been claimed for that same investment
under §§ 48, 48A, 48B, 48E, 45Q, or 45V, the IRS will not allocate the § 48C credit and
any previously sent Allocation Letter is void.”
(2) Coordination with § 45X credit. Additionally, property is not an “eligible
component” for purposes of the credit under § 45X (§ 45X credit) if it is produced at a
facility and the basis of any property included in such facility is taken into account for
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purposes of § 48C after August 16, 2022. See § 45X(c)(1)(B). For purposes of § 48C,
a facility includes all eligible property included in a qualifying advanced energy project
for which a taxpayer receives an allocation of § 48C credits and claims such credits
after August 16, 2022. Guidance regarding whether property has been produced at a
facility the basis of which has been taken into account for purposes of § 48C will be
provided in additional guidance regarding the § 45X credit.
(3) Required taxpayer certification. A taxpayer must certify under penalties of
perjury that the taxpayer did not claim a credit for that same investment under any of
§§ 45X, 48, 48A, 48B, 48E, 45Q, or 45V.
“Under penalties of perjury, I declare that I have examined the
information contained in this affirmative statement and the
documents that substantiate this affirmative statement, and to the
best of my knowledge and belief, it is true, correct, and complete.”
Additionally, the person signing the penalty of perjury statement must also
certify the following:
“I further declare that I have authority to sign this document on
behalf of the taxpayer.”
A taxpayer must provide this certification statement with (1) its § 48C(e) application and
(2) at the time it notifies DOE that the project has been placed in service.
.06 Section 48C(e) Energy Communities Census Tracts. Section 48C(e)(2) limits
the total amount of § 48C credits that the Secretary may allocate under the § 48C(e)
program to $10 billion. Of that amount, the Secretary must allocate at least $4 billion of
§ 48C credits to projects located in certain energy communities (as described in
§ 45(b)(11)(B)(iii)) that did not have a project that received a certification and allocation
of credits under the § 48C(e) allocation program (§ 48C(e) Energy Communities Census
20

Tracts). Accordingly, as part of DOE’s recommendations, DOE will determine which
projects are in § 48C(e) Energy Communities Census Tracts and are therefore eligible
for an allocation of the $4 billion of § 48C credits that are available only for projects
located in those census tracts. Because of the limitation in § 48C(e)(2) on allocations
with respect to projects that are not in § 48C(e) Energy Communities Census Tracts,
whether a project is in a § 48C(e) Energy Communities Census Tract may impact
DOE’s recommendation with respect to a project. An applicant will be able to determine
whether its project is located in a § 48C(e) Energy Communities Census Tract using the
mapping tool that will be referenced in the additional § 48C(e) program guidance. The
determination of whether a project is located in a § 48C(e) Energy Communities Census
Tract will be made at the time that DOE provides recommendations to the IRS and will
not be redetermined.
.07 Certification for Prevailing Wage and Apprenticeship Requirements. As part
of a § 48C(e) application (as described in section 6 of this notice), an applicant who
intends to apply for and receive an allocation of § 48C credits calculated at the 30
percent credit rate must confirm that it intends to satisfy the prevailing wage and
apprenticeship requirements described in section 4 of this notice (Initial PWA
Confirmation). When the taxpayer notifies DOE that it has placed the project in service
(pursuant to section 5.09 of this notice), such taxpayer must also confirm that it satisfied
the requirements in section 4 of this notice (Final PWA Confirmation). If a taxpayer
does not provide an Initial and Final PWA Confirmation at the times described in this
paragraph, such taxpayer will be required to claim the § 48C credit at the 6 percent
credit rate and the remainder of § 48C credits allocated to such project, if any, will be
21

forfeited and available for reallocation in a future § 48C(e) program allocation round.
Nothing in this paragraph prevents the IRS from determining during an examination that
a taxpayer did not satisfy the requirements in section 4 of this notice.
.08 IRS Issuance of Certification. A taxpayer whose application is accepted and
who received an Allocation Letter from the IRS pursuant to section 5.02(8) of this notice
must obtain a Certification Letter pursuant to section 7 of this notice to be eligible to
claim the § 48C credit specified in its Allocation Letter.
.09 Notification that Project is Placed In Service.
(1) A taxpayer has 2 years from the date of the Certification Letter (as described
in section 5.08 and section 7 of this notice) to place the project in service. See section
3.04 of this notice for the definition of placed in service. A taxpayer must notify DOE
when the project is placed in service by submitting such notification through the
eXCHANGE portal. DOE will accept a taxpayer’s notification that the project was
placed in service and send an acknowledgement letter.
(2) If a taxpayer fails to place a project in service within 2 years from the date of
the Certification Letter, a taxpayer must promptly notify DOE and the IRS within 60 days
of the date that is 2 years from the date of the Certification Letter by submitting such
notification through the eXCHANGE portal. Under § 48C(e)(3)(C), any certification is
void if the project is not placed in service within 2 years from the date of the Certification
Letter.
SECTION 6. CONCEPT PAPERS AND § 48C(e) APPLICATIONS
.01 In General. A taxpayer must submit for each project for which it seeks a
§ 48C allocation for Round 1 (1) by July 31, 2023, a concept paper for DOE
22

consideration and (2) by the date specified in the additional § 48C(e) program guidance,
the § 48C(e) application. If an application for DOE recommendation does not (1)
propose an eligible project or (2) include all of the information required in this notice and
the additional § 48C(e) program guidance (referred to herein as compliance review
criteria), DOE may decline to consider the application, or DOE may request an applicant
resubmit its application with the missing information. If DOE does not provide a
recommendation for the application, the IRS will not consider § 48C(e) application.
.02 Information Required in the § 48C Application. By submitting an application
through the eXCHANGE portal, an applicant is submitting a joint application for DOE
recommendation and an application for § 48C(e) certification. The eXCHANGE portal
will prompt an applicant to enter necessary information and will provide corresponding
instructions regarding the requirements for the § 48C(e) application. This information
will include:
(1) The name, address, federal employer identification number, and unique entity
identifier number of the taxpayer (more information on unique entity identifier numbers
at https://www.gsa.gov/about-us/organization/federal-acquisition-service/technologytransformation-services/office-of-systems-management/integrated-award-environmentiae/iae-systems-information-kit/unique-entity-id-ishere?_ga=2.5445299.1413902251.1675976444-2019528746.1671035291). If the
taxpayer is a member of an affiliated group filing consolidated returns, the taxpayer
must also provide the name, address, and TIN of the common parent of the group.
(2) The name, telephone number, and email address of a contact person.
(3) The census tract where the taxpayer will locate the project.
23

(4) Whether the taxpayer will satisfy the prevailing wage and apprenticeship
requirements and seeks a credit allocation in an amount that is 30 percent of the
qualified investment. If the taxpayer intends to comply with the prevailing wage and
apprenticeship requirement, the application should include the Initial PWA Confirmation.
See section 5.07 of this notice.
(5) The information requested in Appendix B of this notice and additional
information specified in the additional § 48C(e) program guidance.
SECTION 7. ISSUANCE OF CERTIFICATION
.01 In General. Section 48C(e)(3)(B) provides that a taxpayer has 2 years from
the date of acceptance by the Secretary of the § 48C(e) application during which to
provide evidence that the requirements of the certification have been met in accordance
with section 7.02 of this notice. If such evidence is not timely received, the allocated
§ 48C credits will be forfeited. Section 48C(e)(3)(C) provides that a taxpayer that
receives a certification has an additional 2-year period beginning from the date of
issuance of the certification to place the project in service and to notify the Secretary
that such project has been placed in service. If such project is not placed in service by
that time period, then the certification is no longer valid.
.02 Satisfaction of Requirements for Certification. A project is eligible for
certification only if the taxpayer has received all permits from federal, state, tribal, and
local governmental bodies for construction of the project at the planned location,
including environmental authorization or reviews necessary to commence construction
of the project. The Secretary may conduct additional allocation rounds for applications
for certification if the Secretary determines that: (1) there is an insufficient quantity of
24

qualifying applications for certification pending at the time of the review, or (2) any
certification made pursuant to § 48C(e)(2) has been revoked pursuant to § 48C(e)(2)(B)
because the project subject to the certification has been delayed as a result of thirdparty opposition or litigation.
The taxpayer must submit to DOE through the eXCHANGE portal evidence
establishing that it has met all requirements necessary to commence construction of the
project.
(1) The documentation establishing that the certification requirements of section
7.01 of this notice are satisfied must be accompanied by a letter that includes the
following written declaration: “I declare that I am authorized to legally bind [name of
taxpayer]. Under penalties of perjury, I declare that I have examined this submission,
including any accompanying documents, and, to the best of my knowledge and belief,
all of the facts contained herein are true, correct, and complete.”
(2) The taxpayer’s submission (the letter including the perjury declaration and
documentation) must be signed and dated by the taxpayer. The person signing for the
taxpayer must have personal knowledge of the facts. Further, the submission must be
signed by a person authorized under state law to bind the taxpayer, such as an officer
on behalf of a corporation, a general partner of a state law partnership, a membermanager on behalf of a limited liability company, a trustee on behalf of a trust, or the
proprietor in the case of a sole proprietorship. If the taxpayer is a member of an
affiliated group filing consolidated returns, the submission also must be signed by a duly
authorized officer of the common parent of the group.
.03 DOE Notification. Upon receipt of the evidence described in section 7.02 of
25

this notice that the taxpayer has satisfied the requirements for certification, DOE will
notify the IRS and will send an acknowledgment to the taxpayer.
.04 IRS Action on Certification. After receiving the notification from DOE
described in section 7.03 of this notice, the IRS will notify the taxpayer, by letter, of the
IRS’s decision regarding certification. The date of the Certification Letter is the date of
issuance of the certification for purposes of § 48C(e)(3)(C).
SECTION 8. OTHER REQUIREMENTS
.01 Significant Change in Plans. The taxpayer must inform DOE and the IRS if
the plans for the project change in any significant respect from the plans set forth in the
concept paper and the § 48C(e) application. The additional § 48C(e) program guidance
will provide the procedures for notifying DOE and the IRS. A significant change is any
change that a reasonable person would conclude might have influenced DOE in
recommending or ranking the project or the IRS in issuing the Allocation Letter had the
person known about the change when considering the § 48C(e) application. Moving the
project to a census tract different than the tract stated in the concept paper and
§ 48C(e) application is a significant change. Failure to satisfy the prevailing wage and
apprenticeship requirements is not a significant change. See section 4.03 of this notice.
Any significant change to the plans set forth in the § 48C(e) application will have the
following effects:
(1) If the IRS is informed of the change after the date on which the final
applications for DOE recommendation were due for Round 1 of the § 48C(e) program
under section 5.02(3) of this notice and before the IRS sends the Allocation or Denial
Letter, see section 5.02(7) of this notice, the IRS and DOE will not consider the project
26

during Round 1 of the § 48C(e) program; and
(2) If the IRS is informed of the change after the Allocation Letter is sent to the
taxpayer, any allocation or certification based on that acceptance is void.
.02 Effect of an Acceptance, Allocation, or Certification. An acceptance,
allocation, or certification under this notice is not a determination that a project is eligible
for the § 48C credit or that any property that is part of the project is eligible property
under § 48C(c)(2). The IRS may, upon examination (and after any appropriate
consultation with DOE), determine that the project does not qualify for the § 48C credit
or that the property is not eligible property for purposes of this credit.
.03 Reduction or Forfeiture of Allocated Credits. The § 48C credits allocated
under section 5 of this notice may be reduced or forfeited in certain situations. A
taxpayer must notify the IRS of the amount of any reduction or forfeiture as required by
this notice through the eXCHANGE portal. The amount of any reduction or forfeiture of
the allocated credits will be returned and included in the aggregate credit remaining in
the § 48C(e) program and under the procedures prescribed pursuant to section 9.02 of
this notice
SECTION 9. FUTURE ALLOCATION ROUNDS
.01 Future Allocation Rounds. After Round 1 of the § 48C(e) program, the IRS
will conduct one or more additional allocation rounds for the § 48C(e) program.
Guidance issued subsequent to the additional § 48C(e) program guidance (subsequent
§ 48C(e) program guidance) will prescribe the procedures applicable to future allocation
rounds of the § 48C(e) program.
.02 Review and Redistribution of Credits. Under § 48C(e), credits available
27

under § 48C(e)(2) may be reallocated if any certification made pursuant to § 48C(e)(3)
has been revoked pursuant to § 48C(e)(3)(C). If credits under § 48C(e) are available
for reallocation, the IRS may conduct an additional allocation program. Subsequent
§ 48C(e) program guidance will prescribe the procedures applicable to any additional
program.
SECTION 10. QUALIFIED PROGRESS EXPENDITURES
.01 Section 48C(b)(2) provides that rules similar to the rules of § 46(c)(4) and (d)
(as in effect on the day before the enactment of the Revenue Reconciliation Act of
1990) apply for purposes of § 48C. Former § 46(c)(4) and (d) provided the rules for
claiming the investment tax credit on qualified progress expenditures (as defined in
former § 46(d)(3)) made by a taxpayer during the taxable year for the construction of
progress expenditure property (as defined in former § 46(d)(2)).
.02 In the case of self-constructed property (as defined in former § 46(d)(5)(A)),
former § 46(d)(3)(A) defined qualified progress expenditures to mean the amount that is
properly chargeable (during the taxable year) to the capital account with respect to that
property. With respect to a qualifying advanced energy project that is self-constructed
property, amounts paid or incurred are chargeable to the capital account at the time and
to the extent they are properly includible in computing basis under the taxpayer’s
method of accounting (for example, after applying the requirements of § 461, including
the economic performance requirement of § 461(h)).
.03 To claim the § 48C credit with respect to the qualified progress expenditures
paid or incurred by a taxpayer during the taxable year for construction of a qualifying
advanced energy project, the taxpayer must make an election (Qualified Progress
28

Expenditures Election) under the rules set forth in § 1.46-5(o) of the Income Tax
Regulations (26 C.F.R. part 1). A taxpayer may not make the Qualified Progress
Expenditures Election for a qualifying advanced energy project until the taxpayer has
received a Certification Letter for the project under section 5.02(10) of this notice.
.04 If a taxpayer makes a Qualified Progress Expenditures Election pursuant to
section 10.03 of this notice, rules similar to the recapture rules in § 50(a)(2)(A) through
(D) apply. In addition to the cessation events listed in § 50(a)(2)(A), examples of other
events that will cause the project to cease being a qualifying advanced energy project
are:
(1) Failure to place the project in service within 2 years from the date of the
Certification Letter; or
(2) A significant change to the plans for the project as set forth in the § 48C(e)
application if, under section 8.01 of this notice, the allocation is void as a result of the
change.
SECTION 11. DISCLOSURE OF INFORMATION
Section 48C(e)(7) provides that upon making a certification under § 48C(e), the
Secretary is required to disclose publicly the identity of the applicant and the amount of
the credit certified with respect to such applicant. Accordingly, the IRS will publish the
results of Round 1 of the § 48C(e) program and will disclose the identity of the taxpayer
and the amount of the § 48C credits allocated to the taxpayer with respect to projects
that have been allocated a § 48C credit and have received a certification.
SECTION 12. EFFECTIVE DATE
This notice is effective on February 13, 2023.
29

SECTION 13 PAPERWORK REDUCTION ACT
The collection of information contained in this notice has been submitted to the
Office of Management and Budget (OMB) in accordance with the Paperwork Reduction
Act (44 U.S.C. § 3507) under control number 1545-2151 and approval is pending. An
agency may not conduct or sponsor, and a person is not required to respond to, a
collection of information unless the collection of information displays a valid OMB
control number.
The collections of information in this notice are in sections 5, 6, 7, 8 and
Appendix B of this notice. This information is required to obtain an allocation of § 48C
credits. The IRS will use this information to verify that the taxpayer is eligible for the
§ 48C credits. The collection of information is required to obtain a benefit. The likely
respondents are business or other for-profit institutions.
The estimated total annual reporting burden is 275,000 hours.
The estimated annual burden per respondent varies from 70 to 150 hours,
depending on individual circumstances, with an estimated average of 110 hours. The
estimated number of respondents is between 2000 to 3000.
The estimated annual frequency of responses is on occasion.
Books or records relating to a collection of information must be retained as long
as their contents may become material in the administration of any internal revenue law.
Generally, tax returns and return information are confidential, as required by 26 U.S.C.
§ 6103.
SECTION 14. DRAFTING INFORMATION
The principal author of this notice is John M. Deininger of the Office of Associate
30

Chief Counsel (Passthroughs & Special Industries). For further information regarding
this notice contact Mr. Deininger on (202) 317-6853 (not a toll-free call). Any questions
or comments regarding the non-tax aspects of this notice can be submitted to the
Department of Energy at [email protected]. DOE may post questions and
answers related to this notice on Infrastructure eXCHANGE at https://infrastructureexchange.energy.gov (select 48C from the list of options to view questions and answers
specific to notice). Any questions or comments received under this notice are subject to
public release pursuant to the Freedom of Information Act. DOE is under no obligation
to respond to, or acknowledge receipt of, any questions or comments submitted under
this notice and any responses provided do not constitute legal advice provided by either
DOE or the IRS.

31

APPENDIX A
Qualifying Advanced Energy Projects
For the purposes of determining eligibility for the § 48C tax credit, a qualifying
advanced energy project means:
1. Clean Energy Manufacturing and Recycling Projects
A qualifying advanced energy project in this category re-equips, expands, or establishes
an industrial or manufacturing facility for the production or recycling of:
a. Property designed to be used to produce energy from the sun, water, wind,
geothermal deposits (within the meaning of 26 U.S.C. § 613(e)(2)), or other renewable
resources.
(i) Examples of eligible property include solar panels and their specialized
support structures; wind turbines, towers, floating offshore platforms, and related
equipment; power electronics designed for use with eligible solar or wind property;
equipment to concentrate sunlight to generate heat for industrial processes or to convert
it to electricity; geothermal turbines and heat pumps; hydropower turbines; and other
products directly used to generate electrical and/or thermal energy from renewable
resources, as well as the specialized components, subcomponents, and materials
incorporated into any such eligible property, including equipment for sensing
communication, and control.
(ii) Examples of ineligible property include equipment for applications other than
the conversion of energy from renewable resources for delivering electricity, building
heat, or industrial process heat such as a gas turbine generator set which burns natural
gas, or building that houses a boiler to heat water from fossil fuel.
b. Fuel cells, microturbines, or energy storage systems and components.
(i) Examples of eligible property include stationary batteries; stationary hydrogen
fuel cells; hydrogen storage vessels; microturbines for combined heat and power
systems; pumps and turbines for pumped hydropower storage systems; and the
specialized components of any such equipment, including equipment for sensing
communication, and control.
(ii) Examples of ineligible property include heavy gas turbines. For electric
vehicle batteries and fuel cells for vehicles see the “light-, medium-, or heavy-duty
electric or fuel cell vehicles” project class.
c. Electric grid modernization equipment or components.
(i) Examples of eligible property include grid equipment for electricity delivery;
power flow, control, and conversion, such as transformers, power electronics, advanced

cables and conductors, advanced meters, breakers, switchgears, composite poles,
converters, MVDC and HVDC lines, grid enhancing technologies, and electrical steel or
alloys used in transformer cores. Examples of eligible property also include the
specialized components of any such grid modernization equipment, including
components for sensing communication, and control.
(ii) Electric vehicle supply equipment qualifies under the “light-, medium-, or
heavy-duty electric or fuel cell vehicles” project class. Storage technologies for grid
applications qualify under the “fuel cells, microturbines, or energy storage systems and
components” project class.
d. Property designed to capture, transport, remove, use, or sequester carbon oxide
emissions.
(i) Examples of eligible property include carbon capture equipment necessary to
compress, treat, process, liquefy, pump or perform some other physical action to
capture carbon oxides, including solvents; membranes; sorbents; chemical processing
equipment; compressors; monitoring equipment; and injection equipment; and well
components such as packers, casing strings, steel tubulars, well head, valves, and
sensors suitable for use in Underground Injection Control (UIC) Class VI wells. Eligible
property also includes transportation equipment, as in a system of gathering and
distribution pipelines, including pipelines that collect carbon oxide captured from an
industrial facility or multiple facilities for the purpose of transporting that carbon oxide.
(ii) Examples of ineligible property include scrubbers for conventional air
pollutants (except those that are required to remove pollutants upstream of carbon
capture equipment for technical performance reasons); energy generation equipment,
(except as related to energy recovery at carbon capture systems); and refining
equipment.
e. Equipment designed to refine, electrolyze, or blend any fuel, chemical, or product
which is renewable, or low-carbon and low-emission. For the purposes of Round 1 of
the § 48C(e) program, such renewable, and low-carbon, low-emission fuels, chemicals,
and products include:
(i) Renewable transportation fuel which:
(A) is suitable for use as a fuel in a vehicle, marine vessel, or aircraft,
(B) is derived from or co-processed with:
(I) a biomass feedstock, or
(II) hydrogen produced from renewable energy and inputs, and
(C) is not derived from palm fatty acid distillates or fossil fuels, including coal,
natural gas, and petroleum.
A qualifying advanced energy project does not include any portion of a project for the
production of any property which is used in the refining or blending of any transportation
fuel (other than renewable fuels, as described herein).
2

(ii) Clean hydrogen produced with a well-to-gate carbon intensity of less than
4kgCO2e/kgH2, in accordance with the definition of qualified clean hydrogen under the
§ 45V tax credit program.
(iii) Other fuel which:
(A) is derived from or co-processed with a renewable feedstock or achieves at
least a 50 percent lifecycle greenhouse gas emissions reduction in comparison with the
conventional alternative,
(I) is not a transportation fuel, and
(II) is not derived from palm fatty acid distillates or fossil fuels, including
coal, natural gas, and petroleum.
(iv) Product or chemical which:
(A) is derived from or co-processed with a renewable feedstock or achieves at
least a 50 percent lifecycle greenhouse gas emissions reduction in comparison with the
conventional alternative,
(B) is suitable for use as an industrial feedstock, and
(C) is not derived from palm fatty acid distillates or fossil fuels, including coal,
natural gas, and petroleum.
(v) Examples of eligible property include electrolyzers; mixing devices; pumps;
separation devices; bioprocessing equipment; biomass preprocessing equipment; and
reactors, so long as they are intended for use to produce eligible fuels, chemical, and
products, as demonstrated through engineering specifications or offtake agreements.
(vi) Examples of eligible fuels, chemicals, and products produced by eligible
equipment include hydrogen produced through electrolysis powered by low- or zeroemissions energy; low-emissions ammonia; renewable biofuels, including sustainable
aviation fuel and fuels intended to displace petroleum fuel in on-road and off-road
applications; and low-emissions chemicals, basic organic chemicals, and polymer
resins.
(vii) Examples of ineligible fuels and chemicals would include those derived
solely from fossil resources produced through conventional petroleum and natural gas
refining.
Instructions for calculating well-to-gate carbon intensity of clean hydrogen and lifecycle
emissions rates will be provided in additional § 48C(e) program guidance.
f. Property designed to produce energy conservation technologies (including
residential, commercial, and industrial applications)
(i) Examples of eligible energy conservation property include technologies and
grid-interactive devices eligible for residential or commercial efficiency improvements for
purposes of the § 25C credit or the § 179D tax deduction, as well as equipment that
directly reduces net energy use in industrial applications, such as ultra-efficient heat
3

pumps, insulation, ultra-efficient hot water systems, sensors, controls, and similar
advanced efficiency technologies.
(ii) Examples of ineligible energy conservation property include those that reduce
electricity usage by increasing direct natural gas or other fossil fuel use and/or lead to
increased system-level emissions.
g. Light-, medium-, or heavy-duty electric or fuel cell vehicles, as well as
technologies, components, or materials for such vehicles, and associated charging or
refueling infrastructure.
(i) Examples of eligible property include battery electric, plug-in hybrid electric, or
fuel cell cars, trucks, and buses, as well as the specialized components of those
vehicles, such as batteries, electric drive systems, fuel cells, and the materials and
subcomponents therein.
(ii) Examples of eligible charging or refueling infrastructure include electric
vehicle supply equipment (EVSE), components from the grid connection to the vehicle,
bidirectional charging equipment, and components used in hydrogen refueling stations
(e.g., hydrogen compressors, pumps, storage vessels, and dispensing equipment).
(iii) Examples of ineligible equipment include internal combustion engine vehicles
of all sizes, non-plug-in hybrid vehicles of less than 14,000 pounds gross vehicle weight
rating, and their components, as well as associated refueling infrastructure, such as
petroleum gas, liquefied or compressed natural gas, or ethanol refueling stations.
Examples of ineligible equipment also include components of charging or refueling
stations, such as signage, that are not directly involved in the transfer of fuel or power to
the vehicle.
h. Hybrid vehicles with a gross vehicle weight rating of not less than 14,000 pounds,
as well as technologies, components, or materials for such vehicles.
(i) Examples of eligible property include traction batteries, converters, power
electronics, and assembled hybrid vehicles themselves, but components and materials
must be designed for large hybrid vehicles with a gross vehicle weight rating of not less
than 14,000 pounds, as demonstrated through engineering specifications and/or offtake
agreements.
i. Other advanced energy property designed to reduce greenhouse gas emissions as
may be determined by the Secretary.
(i) Examples of eligible advanced energy property include specialized
components and equipment for nuclear power reactors or their fuels, and equipment
used to reduce the emissions of industrial processes. Property may be determined to
be designed to reduce greenhouse gas emissions either through published guidance or
in the letter notifying a taxpayer that the IRS has accepted the taxpayer’s application for
4

§48C certification with respect to the property.
2. Greenhouse Gas Emission Reduction Projects
A qualifying advanced energy project in this category re-equips an industrial or
manufacturing facility, including energy-intensive manufacturing sectors, such as
cement, iron and steel, aluminum, and chemicals, with equipment designed to reduce
greenhouse gas emissions by at least 20 percent through the installation of one of more
of the following:
a. Low- or zero-carbon process heating systems.
(i) Examples of eligible equipment include electric heat pumps, combined heat
and power (CHP) systems, and heating systems based on electricity, clean hydrogen,
biomass, or waste heat recovery.
b. Carbon capture, transport, utilization, and storage systems.
(i) Examples of eligible equipment include carbon capture equipment necessary
to compress, treat, process, liquify, pump, or perform some other physical action to
capture carbon oxides, and specialized equipment and materials needed for the storage
of carbon oxide including carbon dioxide pipelines; monitoring equipment; and injection
equipment and well components such as packers; casing strings; steel tubulars; well
head; valves; and sensors suitable for use in UIC Class VI wells.
(ii) Examples of ineligible property include scrubbers for conventional air
pollutants, except those that are required to remove pollutants upstream of carbon
capture equipment for technical performance reasons; energy generation equipment,
except as related to energy recovery at carbon capture systems; and refining
equipment.
c. Energy efficiency and reduction in waste from industrial processes.
(i) Examples of eligible equipment include technologies that reduce direct fuel
use, electricity use, or waste in industrial applications, such as industrial heat pumps,
combined heat and power (CHP) systems, insulation, sensors, controls, advanced
recycling approaches, smart energy management, and similar advanced efficiency
technologies.
d. Any other industrial technology designed to reduce greenhouse gas emissions, as
determined by the Secretary.
(i) Examples of other eligible industrial technologies include electrification of
direct fuel use processes, adoption of renewable or low-emissions fuels and feedstocks,
and other equipment replacement or process redesigns that reduce fuel or processrelated emissions or otherwise contribute to reducing greenhouse gas emissions by at
5

least 20 percent.
Instructions for calculating and demonstrating an emissions reduction of 20 percent will
be provided in the additional § 48C(e) program guidance.
3. Critical Material Projects
A qualifying advanced energy project in this category re-equips, expands, or
establishes an industrial facility for the processing, refining, or recycling of critical
materials (as defined in § 7002(a) of the Energy Act of 2020 (30 U.S.C. § 1606(a)). For
purposes of this Phase I, critical materials will consist of:
a. The currently effective final list of critical minerals as determined by the U.S.
Geological Survey (see 2022 Final List of Critical Minerals for the list published in 2022
available at: https://www.federalregister.gov/documents/2022/02/24/2022-04027/2022final-list-of-critical-minerals); and
b. Any additional critical materials as determined by the Secretary of Energy and
posted on the http://www.energy.gov/criticalmaterials by May 31, 2023.
Examples of eligible projects in this project category include industrial facilities that
process raw ore, brines, mine tailings, end-of-life products, waste streams, and other
source materials into critical materials.
Examples of ineligible projects under this project category include facilities that
process critical materials into derivative products, such as metals processing. However,
facilities of this latter type may be eligible under the Clean Energy Manufacturing and
Recycling Projects category.

6

APPENDIX B
DOE APPLICATION PROCESS
I. DOE REVIEW PROCESS
A two-stage technical evaluation process will be used for submissions:
• Stage 1 – Concept Paper
• Stage 2 – § 48C(e) Application
A. Concept Paper
The first stage requires taxpayers to submit concept papers describing the proposed
project. Concept papers will be evaluated against criteria that may include eligibility
requirements, definitions for qualifying advanced energy projects, reasonable
expectation of commercial viability, and other factors described in the additional
§ 48C(e) program guidance. Following this preliminary review, taxpayers will receive a
letter either encouraging them to submit a § 48C(e) application or discouraging them
from submitting a § 48C(e) application. DOE will begin accepting concept papers
when the additional § 48C(e) program guidance is issued on May 31, 2023, and
concept papers must be submitted to DOE no later than July 31, 2023.
A taxpayer that receives a discouragement letter may still submit a § 48C(e) application
in accordance with the § 48C(e) program guidance. Receiving a discouragement letter
in response to a submitted concept paper does not disqualify a taxpayer from submitting
a § 48C(e) application but represents DOE’s feedback that the project, as
proposed, is unlikely to receive a recommendation based on the information
provided in the concept paper.
B. § 48C(e) Application
The second evaluation stage will consist of a review of § 48C(e) applications submitted
after the concept paper stage. Taxpayers may not submit § 48C(e) applications
unless they submitted concept papers by the specified deadline.
DOE will review applications for DOE recommendation for compliance to determine that
(1) the application meets the eligibility requirements, (2) the information required by the
additional § 48C(e) program guidance has been submitted, (3) the taxpayer filed a
timely concept paper, and (4) all mandatory requirements of the additional § 48C(e)
program guidance are satisfied. The review will also include a thorough, consistent,
and objective examination of applications for DOE recommendation based on technical
review criteria and program policy factors outlined in the additional § 48C(e) program
guidance.
II. APPLICATION EVALUATION INFORMATION

A. Technical Review Criteria

Applications for DOE recommendation will be evaluated based on technical review
criteria to be described in the additional § 48C(e) program guidance. These criteria will
include selection criteria described in § 48C(d)(3) and additional criteria that further the

goals of the program.
As part of the technical review criteria to be described in the additional § 48C(e)
program guidance, DOE anticipates evaluating applications for DOE recommendation
based on the net impact of the qualifying project in avoiding or reducing greenhouse
gases emissions, as described in the additional § 48C(e) program guidance. DOE also
anticipates evaluating applications for DOE recommendation based on the community
benefits of the proposed qualifying advanced energy projects, which may include
community and labor engagement and commitment to high quality and accessible jobs
and workforce pathways.
B. Program Policy Factors
In addition to technical review criteria, DOE may consider one or more policy factors in
determining which applications for DOE recommendation submitted during Round 1 of
the § 48C(e) program to recommend to the IRS for certification.
To achieve maximum benefits to strengthen U.S. industrial competitiveness and clean
energy supply chains as well as to promote high quality jobs and community benefits,
DOE may consider giving priority to qualifying advanced energy projects not eligible for
support from other DOE financial assistance programs funded by the Infrastructure
Investment and Jobs Act (Public Law 117-58) or the Inflation Reduction Act of 2022
(Public Law 117-169).
In some cases, benefits towards the program’s goals may be enhanced if a project
receiving a credit under § 48C also receives complementary assistance from other
programs. For taxpayers seeking assistance from other programs for the same
proposed qualifying advanced energy project, DOE may consider whether the
application for DOE recommendation sufficiently justifies the need for and benefits of
receiving assistance from multiple programs. Complementary assistance may also
affect the tax treatment of property for which a taxpayer receives an allocation under the
§ 48C(e) program.
C. Strengthening Secure, Domestic, Clean Energy Supply Chains
To help build more resilient, diverse, and secure U.S. clean energy supply chains, DOE
may consider whether proposed projects address specific gaps, vulnerabilities, or risks
in the domestic production of clean energy products. The additional § 48C(e) program
guidance will indicate specific priority technologies that would address these gaps,
vulnerabilities, and risks to relevant domestic supply chains.
To further ensure the § 48C(e) program supports these goals to the greatest extent
possible, DOE may conduct a review to determine if an applicant has a connection with
a foreign country of risk that could frustrate the achievement of these goals. To ensure
transparency of foreign connections, DOE anticipates requiring applicants to provide
certain information regarding, for example, board membership, ownership structure, and
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foreign relationships, as well as sources of, and any plans to export, critical minerals.
III. SUBMISSION AND REGISTRATION REQUIREMENTS FOR DOE
RECOMMENDATION PROCESS
This section describes DOE’s submission and registration requirements for applicants.
An application for DOE recommendation will not be considered in Round 1 of the
§ 48C(e) program unless the concept paper is received by the concept paper deadline,
and the § 48C(e) application is received by the end of the application period.
A. Submission of Application
All § 48C(e) application materials must be submitted through the eXCHANGE portal at
https://infrastructure-exchange.energy.gov to be considered. Taxpayers will not be able
to submit a § 48C(e) application through the eXCHANGE portal unless registered.
Please read the registration requirements below carefully and start the registration
process immediately. If you have problems completing the registration process, send
an email to the eXCHANGE portal helpdesk at https://infrastructureexchange.energy.gov. Section 48C(e) applications submitted by any other means will
not be accepted.
B. Registration Process Requirements
Taxpayers that wish to participate in the § 48C(e) program must register and create an
account on the eXCHANGE portal at: https://infrastructure-exchange.energy.gov. This
account will allow the user to apply to any open Funding Opportunity Announcements
(FOA) that are currently the eXCHANGE portal. It is recommended that each business
unit use only one account as the appropriate contact point for each submission.
Potential applicants will be required to have a Login.gov account to access the
eXCHANGE portal. As part of the eXCHANGE portal registration process, new users
will be directed to create an account in Login.gov. Please note that the email address
associated with Login.gov must match the email address associated with the
eXCHANGE portal account. For more information, refer to the Infrastructure
eXCHANGE Login Guide in the Manuals section of the eXCHANGE portal at
https://infrastructure-exchange.energy.gov/Manuals.aspx.
C. Electronic Authorization of Applications
Submission of § 48C(e) application materials through electronic systems used by DOE,
including the eXCHANGE portal, will constitute the authorized representative’s approval
and electronic signature.
D. Markings of Confidential Information
If elements of a § 48C(e) application contain information the taxpayer considers to be
trade secrets, confidential, privileged or otherwise exempt from disclosure under the
Freedom of Information Act (FOIA, 5 U.S.C. § 552), the taxpayer may assert a claim of
exemption at the time of application by placing the following text on the first page of the
§ 48C(e) application, and specifying the page or pages of the § 48C(e) application to be
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restricted:
“Pages [list applicable pages] of this document may contain trade secrets,
confidential, proprietary, or privileged information that is exempt from public
disclosure. Such information shall be used or disclosed only for evaluation
purposes or in accordance with a financial assistance or loan agreement
between the submitter and the Government. The Government may use or
disclose any information that is not appropriately marked or otherwise restricted,
regardless of source. [End of Notice]”
The header and footer of every page that contains confidential, proprietary, or privileged
information must be marked as follows: “Contains Trade Secrets, Confidential,
Proprietary, or Privileged Information Exempt from Public Disclosure.” In addition, each
line or paragraph containing proprietary, privileged, or trade secret information must be
clearly marked with double brackets or highlighting.

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