Advanced Energy United encouraged by Treasury guidance, inclusion of recycling and innovative technologies 

WASHINGTON, DC – Today, national business association Advanced Energy United commended the U.S. Department of Treasury for clarifying its guidance on how to use the 45X tax credit established by the Inflation Reduction Act, including the inclusion of recycled content and allowing for innovative technologies to qualify. 

"This credit is the keystone of the Inflation Reduction Act's industrial policy. This guidance helps to clarify just when and how this credit can be used, providing greater certainty to businesses looking to set up shop in the U.S. and hire more Americans,” said Harry Godfrey, Managing Director at Advanced Energy United who leads the organization’s Federal Investment and Manufacturing portfolio. “By creating a stackable set of credits targeted to each step of the supply chain for solar, wind, batteries, and critical minerals, 45X is helping draft clean energy manufacturing back to American shores and lowering the already-competitive cost of clean energy for U.S. consumers.” 

"At first brush, we're particularly encouraged by two elements of this guidance: the inclusion of recycled content, and flexible, inclusive technological definitions,” added Godfrey. “By permitting recycled content, Treasury has further incentivized the development of a circular clean energy supply chain, something fossil fuels can never achieve, while also helping make imported content into American-made resources. By allowing new and innovative technologies, like permitting DC-optimized inverter systems to qualify as microinverters, Treasury is ensuring that this policy encourages, rather than stifles, innovation in this dynamic industry.”

Advanced Energy United produced a series of guides for state Governors, regulators, and lawmakers, collectively titled, “Unleashing America’s Advanced Energy Future: Federal Resources to Combat Inflation, Create Jobs & Achieve Energy Independence,” which provides decision-makers with a comprehensive view of the resources and incentives built into the Inflation Reduction Act and Bipartisan Infrastructure Law as it pertains to clean energy, transmission, transportation electrification, advanced energy manufacturing, and building efficiency and electrification. The guides explain the provisions for expanding the advanced energy workforce, increasing the value and utilization of tax incentives (i.e., transferability and “direct pay”), and promoting the use of domestic content in clean energy and transportation projects. Included therein is a detailed analysis of 45X and its potential to reduce clean energy costs. 

Advanced Energy United will continue to work with the Administration and Congress to build and sustain a robust clean energy supply chain in America.