The Inflation Reduction Act introduced the Section 45X Advanced Manufacturing Production Credit to boost domestic clean energy manufacturing. This powerful incentive can help businesses reduce costs and increase competitiveness in the growing renewable energy market.
What Is the 45X Credit?
The 45X credit provides a production-based tax incentive for manufacturers that produce eligible clean energy components in the United States. These include solar modules, wind energy components, battery cells and modules, inverters, electrode active materials, and critical minerals.
Who Can Benefit?
Businesses that manufacture any of the following components can take advantage of the 45X credit:
| Category |
Eligible Component |
Credit Amount |
| Solar Energy |
Photovoltaic Cell |
$0.04 per DC watt |
| Solar Energy |
Photovoltaic Module |
$0.07 per DC watt |
| Solar Energy |
Photovoltaic Wafer |
$12 per square meter |
| Solar Energy |
Solar-grade Polysilicon |
$3 per kilogram |
| Solar Energy |
Polymeric Backsheet |
$0.40 per square meter |
| Solar Energy |
Torque Tube |
$0.87 per kilogram |
| Wind Energy |
Blade |
$0.02 per blade |
| Wind Energy |
Nacelle |
$0.02 per watt of turbine capacity |
| Wind Energy |
Tower |
$0.02 per watt of turbine capacity |
| Wind Energy |
Offshore Wind Vessel |
10% of vessel sales of turbine capacity |
| Battery Components |
Battery Cell |
$35 per kWh of capacity |
| Battery Components |
Battery Module |
$10 per kWh of capacity |
| Inverters |
Commercial Inverter |
$0.02 per AC watt |
| Critical Minerals |
Lithium, cobalt, nickel, etc. |
10% of production costs |
| Electrode Active Materials |
Cathode/Anode Materials |
10% of production costs |
Why Act Now?
The credit is available for eligible production through 2032, but planning ahead ensures you capture maximum benefits. With options for direct payment and transferability, even businesses with limited tax liability can monetize these credits.
Ready to Learn More?
Porte Brown is here to help you navigate the complexities of the 45X credit and identify opportunities for your business. Contact us today to learn how you can maximize your savings and stay ahead in the clean energy revolution.
