Section 48E & 45Y Clean Electricity Tax Credits

The rules changed.
Your compliance program
needs to match.

The IRS measures compliance at the Qualified Facility level. One gap eliminates the increased credit for the entire facility.

Schedule a 48E/45Y compliance review →

50

Customers

$3B

Tax credit value under engagement

14M

Labor hours reviewed

19 GW

Solar, wind, storage and more

Interactive Tool

See exactly what your credits are worth.

Enter your project basics and applicable adders. The calculator returns your credit rate and dollar value, and shows how each bonus stacks.

What you build as one project, the IRS treats as many separate compliance units.

Need vs. Delivered

What you need. What Empact delivers.

01

QF-Level Compliance

Each inverter is a separate Qualified Facility, and one uncured PWA gap can void the increased credit for the whole facility.

We structure your project into QFs and manage PWA per unit in NexusIQ™ from day one through final reporting.

02

FEOC at the QF Level

FEOC applies per QF with no cure, so a single material assistance gap voids the credit entirely.

We map each QF’s bill of materials to FEOC safe harbor tables and deliver a substantiation memo built for tax opinions.

03

Diligence-Ready Documentation

Tax equity, insurers, and credit buyers now require independent per-QF proof, and EPC self-reporting no longer clears diligence.

We deliver per-QF reports, certifications, reliance letters, and audit files, ready the moment diligence asks.

What’s at stake for PWA

One PWA gap at one unit can eliminate the increased credit for the entire facility.

30% → 6%

An uncured PWA failure strips 80% of the credit value.

Penalties don’t end at COD

A&R failures during the five-year recapture period can claw back credit already booked.

Cure costs triple with intentional disregard

Back wages and interest stack on a per-laborer penalty that doubles to $10,000.

Why Empact

Proven, trusted, and guaranteed.

Proven Impact

1 million wage-hours in 60 days.

We reviewed a 400 MW solar project after tax equity rejected EPC self-reporting, caught what the EPC missed, and closed on time.

Trusted by Partners

Recommended where it counts.

Tax counsel, insurers, and tax equity regularly recommend us. Our certifications and reliance letters exceed exacting diligence standards.

Guaranteed Results

We stand behind our work.

We are the only firm to back PWA results with a financial guarantee. If a taxpayer is penalized for a PWA issue we missed, we make them whole.

Compliance Timeline

Clean Energy Tax Credit Compliance Timeline

What you are subject to depends on when you began construction (BOC) or safe-harbored your project.

Click any period to see what applies to your project.

Prior to 2025

Not subject to 48E Not subject to FEOC

Throughout PWA Domestic Content

Construction began before the new rules. No 48E requirements and no FEOC restrictions apply to this project.

Jan to Jun 2025

Subject to 48E Not subject to FEOC

Throughout PWA Domestic Content

48E rules apply at the Qualified Facility level. FEOC restrictions do not yet apply to this window.

Jul to Aug 2025

Subject to 48E FEOC: effective control

Throughout PWA Domestic Content

48E applies. FEOC effective-control restrictions begin attaching to ownership and control.

Sep to Dec 2025

Subject to 48E Effective control

Throughout PWA Domestic Content

48E applies. FEOC effective-control look-backs can reach projects that started in this window.

Jan to Jun 2026

Subject to 48E All FEOC

Throughout PWA Domestic Content

48E applies and the full FEOC framework, including the Material Assistance Cost Ratio, is in force.

After Jun 2026

All FEOC + 48E apply Solar/wind: PIS by 12/31/2027

Throughout PWA Domestic Content

All FEOC and 48E rules apply. Solar and wind must be placed in service by 12/31/2027 to qualify.

One Platform

Compliance Coverage. One platform across each requirement.

BOC, FEOC, PWA, and Domestic Content, managed end-to-end through NexusIQ™, from construction mobilization through the full IRS audit window. Real-time visibility for owners, developers, tax equity, and counsel.

BOC

Beginning of Construction

Validates physical-work proof: binding contracts, PO sequencing, entity matching, and work authentication.
Keeps an audit-ready repository through the full review window: photos, logs, timesheets, bills of lading.

FEOC

Foreign Entity of Concern

Maps your bill of materials to safe harbor tables, collects supplier certs, and computes your Material Assistance Cost Ratio.
Delivers a substantiation memo with certificates and cost calculations, structured for tax opinions.

PWA

Prevailing Wage & Apprenticeship

Monitors 100% of contractor hours weekly, flagging wage and apprenticeship gaps before they become penalties.
Issues a Project Certificate of Compliance and reliance letter, now required by leading tax equity banks to close.

DC

Domestic Content

Acts as a neutral intermediary: collects costed Bills of Materials and supplier certs without exposing cost data to the developer.
Delivers executive certification for IRS Forms 3468 and 8835.

See where your 48E/45Y credits are exposed.

Schedule a 48E/45Y compliance review → empacttechnologies.com/48e

This document is provided for general informational purposes only and does not constitute legal or tax advice. Consult your legal and tax advisors regarding your project’s specific requirements.