Section 48C Advanced Energy Credit Yield

Turn your certified Section 48C project cost into a credit value you can book and potentially transfer. Provide the qualified investment basis and the awarded percentage to see the gross credit, a monetized value after any transfer discount, and the basis reduction you will record.

Total eligible project cost certified for Section 48C treatment.
Use 30% for full-rate awards or your allocated percentage if reduced.
Percent haircut for tax credit transfer, financing fees, or liquidity discounts. Defaults to 12% when left blank.

For planning only—coordinate with your tax advisors before booking journal entries or executing credit transfers.

Examples

  • $85,000,000 basis, 30% credit, discount left blank ⇒ Section 48C credit value: $25,500,000.00 USD • Monetized value after 12.00% discount: $22,440,000.00 USD • Basis reduction to book: $25,500,000.00 USD • Effective net benefit: 26.40% of qualified investment.
  • $42,000,000 basis, 24% credit, 8% discount ⇒ Section 48C credit value: $10,080,000.00 USD • Monetized value after 8.00% discount: $9,273,600.00 USD • Basis reduction to book: $10,080,000.00 USD • Effective net benefit: 22.08% of qualified investment.

FAQ

What happens if I later recapture part of the credit?

Recapture requires repaying the proportional credit and restoring the corresponding basis. Use this calculator with updated eligible basis to size any payback scenario.

How do prevailing wage and apprenticeship rules affect the percentage?

Failing to meet labor requirements typically drops the award to 6%. Enter that lower rate to see the reduced credit and monetized proceeds.

Can I stack state credits or grants on top of Section 48C?

Yes, but grants may reduce qualified basis. Adjust the basis input after subtracting any federal tax-free grants or excluded financing to avoid double counting.

Additional Information

  • Section 48C credits reduce the tax basis of qualifying property dollar-for-dollar by the credit amount calculated here.
  • Transfer discounts typically include arranger fees, legal costs, insurance, and any spread demanded by tax credit buyers.
  • Awards can be reduced below 30% for projects outside energy communities or lacking prevailing wage/apprenticeship compliance—enter your exact percentage.

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