Advanced Manufacturing Production Tax Credit
The 45X MPTC is a per-unit tax credit for each clean energy component domestically produced and sold by a manufacturer.1 The 45X MPTC is claimed on federal corporate income taxes.2 The credit varies by eligible component and is multiplied by the number of units produced by the taxpayer that were sold that year. The table below summarizes the eligible solar components, their definitions, and the unit credit amount.
Clean energy components that qualify for the 45X MPTC include the PV module and some of its subcomponents, inverters, tracking system components, batteries, and certain critical minerals.
With the exception of the production of critical minerals whose tax credits will never phase out, the other components listed begin to phase out in 2030 and later.
EV/Battery tax credits
| Component | Description | Credit |
|---|---|---|
| Critical minerals | see table | 10% of production costs |
| Battery active materials | 10% of production costs | |
| Battery cells | $35/kWh | |
| Battery modules | $10 or $45/kWh |
Solar (PV) tax credits
| Component | Description | Credit |
|---|---|---|
| Polysilicon | $3/kg | |
| PV wafer | $12/m2 | |
| PV cell | $.04/W | |
| PV module | $.07/W | |
| Backsheet | $.40/m2 | |
| Central inverter | $.0025/W | |
| Utility inverter | $.015/W | |
| Commercial inverter | $.02/W | |
| Residential inverter | $.065/W | |
| Microinverter | $.11/W | |
| Torque tube | $.87/kg | |
| Structural fastener | $2.28/kg |
