Section 45X Manufacturing Credit Estimator

Quantify the cash value of the Inflation Reduction Act’s Section 45X production credit for batteries, solar components, and other advanced manufacturing output. Enter your unit production, the applicable credit rate, and your tax liability to see how much credit you can use or monetize after transfer discounts and fees.

Count of qualifying battery cells, modules, wafers, or other covered components produced during the tax year.
Applicable Section 45X credit per component, based on material type and weight thresholds.
Regular tax liability available to offset after other credits are applied.
Defaults to 0%. Enter the negotiated discount if you sell the credit to a third party.
Defaults to 0%. Include broker, legal, or platform fees expressed as a percent of the credit value.

Illustrative estimate only. Confirm Section 45X eligibility, elections, and monetization strategies with tax counsel before booking revenue.

Examples

  • 220,000 units, $3.00 credit, $500,000 tax, 8% transfer discount, 2% fees ⇒ Gross Section 45X credit $660,000.00 USD • Net credit after transfer costs $595,056.00 USD • Effective discount from transfer/fees 9.84% • Credit applied to tax liability $500,000.00 USD • Corporate tax still due after credit $0.00 USD • Credit remaining to carry forward or transfer $95,056.00 USD
  • 120,000 units, $7.00 credit, $900,000 tax, discounts left blank ⇒ Gross Section 45X credit $840,000.00 USD • Net credit after transfer costs $840,000.00 USD • Effective discount from transfer/fees 0.00% • Credit applied to tax liability $840,000.00 USD • Corporate tax still due after credit $60,000.00 USD • Credit remaining to carry forward or transfer $0.00 USD

FAQ

Can I stack Section 45X with Section 45Q or 45V credits?

Section 45X can pair with other IRA incentives when the same facility meets each program’s eligibility rules. Model each credit separately and coordinate usage with your tax advisors.

How do I handle the direct-pay election?

Direct pay delivers the full credit amount without discounts. Leave the transfer discount and fees at zero to model that scenario.

What if my tax liability is zero?

Enter 0 for corporate tax liability. The calculator will show the full credit available for transfer or carryforward.

Does the calculator account for phase-outs after 2032?

No. It assumes the full statutory rate. Adjust the credit per unit input if the phase-out applies to your production year.

Additional Information

  • Gross credit multiplies qualifying units produced by the statutory dollar amount per unit in Section 45X.
  • Transfer discounts and platform fees reduce the cash received when monetizing the credit; the calculator applies both sequentially to show the effective haircut.
  • Credits applied first offset regular corporate income tax. Any excess can be carried forward or transferred subject to IRS rules and election deadlines.
  • Inputs assume the facility meets domestic content and prevailing wage requirements where applicable.

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