Fed Incentives: Inflation Reduction Act

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