How the 45X Advanced Manufacturing Credit Drives American Energy Dominance

The section 45X Advanced Manufacturing Credit is a federal tax incentive which was established under the Inflation Reduction Act (IRA) in 2022. The goal of 45X is to push for the domestic manufacturing of clean energy goods. It provides economic incentives for innovation and investment in a broad-based “America First” energy policy. American manufacturers are rewarded by this production-based tax credit for each eligible clean energy component they produce and sell, which encourages the development of domestic renewable energy technology. Eligible components are solar, wind, battery, inverters, and critical minerals.