§ 1.48E-0. Table of contents.

§ 1.48E-1 Clean electricity investment credit.

(a) Overview.

(1) In general.

(2) Claim.

(3) Code.

(4) EST.

(5) kWh.

(6) Qualified facility.

(7) Qualified investment with respect to a qualified facility.

(8) Qualified investment with respect to EST.

(9) Secretary.

(10) Section 48E credit.

(11) Section 48E regulations.

(12) Waste energy recovery property (WERP).

(b) Credit amount.

(1) In general.

(2) Applicable percentage.

(3) Base rate.

(4) Alternative rate.

(5) Energy communities increase in credit rate.

(i) In general.

(ii) Applicable credit rate increase.

(6) Domestic content increase in credit rate.

(i) In general.

(ii) Applicable credit rate increase.

(c) Credit phase-out.

(1) In general.

(2) Phase-out percentage.

(3) Applicable year.

(d) Related taxpayers.

(1) Definition.

(2) Related taxpayer rule.

(e) Applicability date.

§ 1.48E-2 Qualified investments in qualified facilities and EST for purposes of section 48E.

(a) Qualified investment with respect to a qualified facility.

(1) In general.

(2) Total basis amount.

(b) Qualified facility.

(1) In general.

(2) Placed in service.

(i) In general.

(ii) Qualified facility subject to § 1.48-4 election to treat lessee as purchaser.

(c) Qualified property.

(1) In general.

(2) Location of property.

(d) Property included in qualified facility.

(1) In general.

(2) Unit of a qualified facility.

(i) In general.

(ii) Functionally interdependent.

(3) Integral part.

(i) In general.

(ii) Power conditioning and transfer equipment.

(iii) Roads.

(iv) Fences.

(v) Buildings.

(vi) Shared integral property.

(vii) Examples.

(e) Definitions related to requirements for qualified property.

(1) Tangible personal property.

(2) Other tangible property.

(3) Depreciation allowable.

(i) In general.

(ii) Exclusions from allowable.

(4) Construction, reconstruction, or erection of the property.

(5) Acquisition of qualified property.

(6) Original use of the property.

(7) Retrofitted qualified facility.

(f) Coordination with other credits.

(1) In general.

(2) Allowed.

(3) Examples.

(g) EST.

(1) Property included in EST.

(2) Unit of EST.

(i) In general.

(ii) Functionally interdependent.

(3) Integral part.

(4) Qualified investment with respect to EST.

(5) Placed in service.

(i) In general.

(ii) EST subject to § 1.48-4 election to treat lessee as purchaser.

(6) Types of EST.

(i) Electrical energy storage property.

(ii) Thermal energy storage property.

(iii) Hydrogen energy storage property.

(7) Modification of EST.

(h) Applicability date.

§ 1.48E-3 Rules relating to the increased credit for prevailing wage and apprenticeship.

(a) In general.

(b) Qualified facility or EST requirements.

(c) Nameplate capacity for purposes of the One Megawatt Exception.

(1) Qualified facilities.

(2) Nameplate capacity for qualified facilities that generate in direct current for purposes of the One Megawatt Exception.

(3) EST.

(i) In general.

(ii) Electrical energy storage property.

(iii) Thermal energy storage property.

(iv) Hydrogen energy storage property.

(4) Integrated operations.

(i) One Megawatt Exception.

(ii) EST One Megawatt Exception.

(d) Transition waiver of penalty for prevailing wage requirements.

(e) No alteration or repair during recapture period described in § 1.48-13(c)(3).

(f) Applicability date.

§ 1.48E-4 Rules of general application.

(a) Qualified interconnection costs included in certain lower-output qualified facilities.

(1) In general.

(2) Qualified interconnection property.

(3) Five-Megawatt Limitation.

(i) In general.

(ii) Nameplate capacity for purposes of the Five-Megawatt Limitation.

(iii) Nameplate capacity for qualified facilities that generate in direct current for purposes of the Five-Megawatt Limitation.

(4) Interconnection agreement.

(5) Utility.

(6) Reduction to amounts chargeable to capital account.

(7) Examples.

(b) Expansion of facility; Incremental production (Incremental Production Rule).

(1) In general.

(2) Measurement standard.

(3) Special rule for restarted facilities.

(4) Computation of qualified investment for a new unit or an addition of capacity.

(i) New unit.

(ii) Addition of capacity.

(5) Examples.

(c) Retrofit of an existing facility (80/20 Rule).

(1) In general.

(2) Expenditures taken into account.

(3) Cost of new components.

(4) New costs.

(5) Excluded costs.

(6) Examples.

(d) Special rules regarding ownership.

(1) Qualified investment with respect to a qualified facility or EST.

(2) Multiple owners.

(3) Section 761(a) election.

(4) Examples.

(e) Coordination rule for section 42 credits and section 48E credits.

(f) Recapture.

(1) In general.

(2) Recapture event.

(i) In general.

(ii) Changes to the Annual Table.

(iii) Yearly determination.

(iv) Carryback and carryforward adjustments.

(3) Recapture amount.

(i) In general.

(ii) Applicable recapture percentage.

(4) Recapture period.

(5) Increase in tax for recapture.

(g) Qualified progress expenditure election.

(h) Incremental cost.

(i) Cross references.

(j) Applicability date.

§ 1.48E-5 Greenhouse gas emissions rates for qualified facilities under section 48E.

(a) In general.

(b) Definitions.

(c) Non-C&G Facilities.

(d) C&G Facilities.

(e) Use of methane from certain sources to produce electricity.

(f) Carbon capture and sequestration.

(g) Annual publication of emissions rates.

(h) Provisional emissions rates.

(1) In general.

(2) Rate not established.

(3) Process for filing a PER petition.

(4) PER determination.

(5) Emissions value request process.

(6) LCA model for determining an emissions value for C&G Facilities.

(7) Effect of PER.

(i) Determining anticipated greenhouse gas emissions rate.

(1) In general.

(2) Examples of objective indicia.

(j) Reliance on Annual Table or Provisional Emissions Rate.

(k) Substantiation.

(1) In general.

(2) Sufficient substantiation.

(l) Applicability date.