Industries We Serve
Energy projects serving data centers can qualify for federal clean energy tax credits based on the underlying generation or energy storage project. Solar, wind and energy storage projects can carry prevailing wage and apprenticeship (PWA), domestic content, prohibited foreign entity (PFE) and beginning-of-construction requirements, depending on the credit, project type and timeline.
Empact protects tax credit value by combining AI-enabled technology with specialized expertise to identify and resolve compliance issues and maintain the record for the life of the credit.
Data center demand can drive large generation and storage projects on aggressive development and construction schedules. The tax credit still depends on the underlying energy project, which means the same sourcing, labor, construction and documentation decisions that determine compliance have to keep pace with the project.
That matters when a credit will be transferred or financed. The compliance record has to support diligence, not simply document what happened after construction. NexusIQ™ and Empact's compliance specialists maintain the underlying evidence, resolve issues with the project team and build the record as the project progresses.
| Credit | What it covers | What Empact manages |
|---|---|---|
| Section 48E, clean electricity investment credit | Qualified investment in qualifying zero-emissions electricity generation facilities and energy storage technology | PWA documentation where required, domestic content documentation where pursued, PFE compliance requirements, beginning-of-construction evidence, and supporting compliance records |
| Section 45Y, clean electricity production credit | Electricity produced by qualifying zero-emissions generation facilities | PWA documentation where required, domestic content documentation where pursued, PFE compliance requirements, beginning-of-construction evidence, and supporting compliance records |
| Sections 48 and 45, legacy credits | Projects that remain within the pre-2025 credit framework | Applicable PWA documentation, domestic content documentation where pursued, beginning-of-construction evidence, and supporting compliance records |
Tax rules and guidance continue to evolve. Which credit and compliance requirements apply depends on the underlying energy project, its configuration and timeline.
Empact maintains the compliance record against the requirements applicable to each project.
Compliance obligations reach every party on a project. Empact works with each of them.
The requirements depend on the underlying energy project's credit, configuration and timeline. Compliance considerations can include prevailing wage and apprenticeship, domestic content, prohibited foreign entity restrictions and beginning of construction. Serving data center load does not create a separate federal clean energy tax credit. Empact identifies and resolves compliance issues before they threaten tax credit value and maintains the compliance record through the credit period.
The tax credit generally belongs to the taxpayer associated with the qualifying generation or energy storage project, not the data center simply because it consumes the power. The project structure determines who claims, transfers or otherwise monetizes the credit.
No. Serving a data center does not create a separate federal clean energy tax credit. The credit depends on the underlying energy project. Qualifying clean electricity generation may be eligible for Section 45Y or 48E, while qualifying energy storage technology may be eligible for Section 48E. Project-specific requirements determine eligibility.
Data center-driven energy projects can move on aggressive development and construction schedules, which compresses the time available to collect and correct compliance evidence. Gaps created during construction can surface later during financing, transfer or diligence, when they may be harder to address.
Compliance should begin early enough to capture required evidence as sourcing, contracting and construction decisions occur. Where a project depends on tax credits for financing or transfer, the compliance record should be ready to support diligence before the project is complete.
Empact manages federal clean energy tax credit compliance, identifying and resolving issues across projects and contractors.
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