Treasury and IRS Release Guidance on the Advanced Energy Project Credit Allocation Program

Back to All Thought Leadership

On February 13, 2023, the Treasury Department and the Internal Revenue Service (the IRS) released Notice 2023-18 (the Notice), which established the program (the Allocation Program) to allocate $10 billion of advanced energy project credits (AEPCs) pursuant to section 48C(e),¹ which was enacted as part of the Inflation Reduction Act of 2022 (the IRA).² The goal of the 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 that serve as inputs for clean energy technology production.