The Ultimate Guide to Advanced Manufacturing Tax Credits (updated 2026)

Investment in clean energy is on the rise, fueled in part by the growth of the US clean energy manufacturing industry. Investments in domestic manufacturing, driven by valuable new tax credits, are fueling a virtuous cycle. The Inflation Reduction Act introduced the §45X advanced manufacturing production tax credit, which incentivized the production of solar, wind, or battery components, inverters, and critical minerals. Manufacturers have several monetization options for their tax credits, including transferability, which permits the tax credit to be sold for cash to a third party.

This paper outlines the §45X tax credit program and its value; commercial standards and monetization options for §45X-eligible manufacturers, including transferability; and the current status of the US manufacturing industry.