The US Department of the Treasury (DOT) has finalised its rules for the 45X Advanced Manufacturing Production Tax Credit, as part of the US’ ongoing efforts to encourage greater domestic production of components and technologies integral to the clean energy transition.
The 45X tax credit aims to incentivise clean energy manufacturing by offering tax credits for companies who base manufacturing facilities in the US, and is a key component of the landmark Inflation Reduction Act (IRA) legislation passed in 2022. Since the passage of the IRA, the US solar sector has received around US$19 billion in private investment, alongside a further US$77 billion in the batteries industry and US$8 billion in the wind sector, and lawmakers are keen for this level of investment to continue.
