Glossary
A reference guide to the acronyms, regulations, and compliance terms that shape clean energy tax credits.
The IRS-recognized date on which a clean energy project officially starts construction, locking in the applicable tax credit rules, rates, and requirements.
A tax credit adder that provides additional credit value for projects that use qualifying US-sourced steel, iron, and manufactured products, verified at the component level.
An entity owned, controlled, or subject to the jurisdiction of a foreign adversary: specifically China, Russia, Iran, or North Korea. Projects with FEOC exposure risk full credit disqualification.
A federal tax credit calculated as a percentage of a qualifying clean energy project's cost basis. Under Section 48E, the base rate is 6%, rising to 30% with PWA compliance and 40% with Domestic Content.
A calculation that measures the percentage of component costs attributable to Prohibited Foreign Entity (PFE) affiliated manufacturers. Projects must stay below annual IRS thresholds to maintain credit eligibility.
Empact's AI-native compliance management platform, purpose-built to track, document, and certify compliance across every clean energy tax credit requirement.
The term used under the One Big Beautiful Bill Act (OBBBA) for entities connected to foreign adversaries that are prohibited from participating in clean energy tax credit projects.
A federal tax credit calculated on a per-kilowatt-hour basis for clean electricity produced. Under Section 45Y, the base rate is $0.005/kWh, rising to $0.025/kWh with PWA compliance.
A federal requirement that laborers and mechanics on qualifying clean energy projects be paid prevailing wages and that a minimum percentage of labor hours be performed by registered apprentices. PWA compliance unlocks the 5x credit multiplier.
The IRS mechanism by which previously claimed tax credits are clawed back when a project is found to be out of compliance, plus interest and penalties.
The technology-neutral Clean Electricity Investment Tax Credit for projects beginning construction in 2025 or later. Measures compliance at the unit of production level.
The technology-neutral Clean Electricity Production Tax Credit, the PTC equivalent of Section 48E.
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