IRC §45X Tax Deduction

Advanced Manufacturing Production Credit

IF YOU ARE... 

  • Manufacturing certain renewable energy or energy storage products, parts, or components in the US 

  • Producing critical minerals in the US including aluminum, beryllium, chromium, cobalt, lithium, and others 

  • Selling to an unrelated person as a part of your company’s trade or business 

YOU MAY QUALIFY FOR A PRODUCTION TAX CREDIT FOR UP TO 10 YEARS THROUGH 2032 

IRC §45X PRODUCTION CREDIT 

The 45X production credit supports domestic manufacturing of renewable energy components within the US. Focusing on solar, wind, battery, and critical mineral applications, it is to provide stability to manufacturers for parts and materials used in making renewable and energy-efficient products. Even if your company can’t use the credits they can be a direct pay refundable credit sold for cash through provisions of the Inflation Reduction Act of 2022. This helps US businesses manage and substantially reduce their energy costs, improve energy security, and support the domestic supply chain. 

* THE CREDIT CAN NOT BE TAKEN IF FACILITIES WERE CONSTRUCTED USING §48C ADVANCED ENERGY PROJECT INVESTMENT TAX CREDIT 

 ELIGIBLE COMPONENT: SOLAR ENERGY 

  • Photovoltaic cells 

  • Photovoltaic wafers 

  • Polymeric back sheets 

  • Solar grade polysilicon 

  • Solar modules 

  • Solar trackers and components including torque tubes and structural fasteners 

ELIGIBLE COMPONENT: WIND ENERGY 

  • Blades 

  • Nacelles 

  • Towers 

  • Offshore wind foundations 

  • Related offshore wind vessels 

ELIGIBLE COMPONENT: INVERTERS (DC TO AC) 

  • Central inverters with a capacity greater than 1 MW 

  • Commercial inverters suitable for commercial or utility-scale applications 

  • Distributed wind inverters with a capacity of up to 150 kilowatts 

  • Microinverters with a rated output of 120/240-volt single phase or 208/480 three phase power 

  • Residential inverters with a rated output of 120/240 volt single-phase power 

  • Utility inverters with a rated output of not less than 600 volt three-phase power 


ELIGIBLE COMPONENT: BATTERIES 

  • Electrodes 

  • Battery cells 

  • Battery modules 

 ELIGIBLE COMPONENT: CRITICAL MINERALS 

  • Minerals that are critical components in the manufacture of certain renewable energy products 

  • Aluminum, beryllium, chromium, cobalt, graphite, lithium, nickel, tungsten and others 

OUR PROCESS 

We will gather data and provide a no-cost feasibility analysis. Upon your approval, we will follow IRS- IRS-prescribed guidelines and criteria to validate potential tax credits. Upon completion, we will provide a qualification report. You can feel confident that Tri-Merit’s audit defense team will be there to defend your claim should an audit occur.