The Inflation Reduction Act
A historical overview of Section 48 treatment for certain smaller energy-project interconnection costs.
Qualifying Interconnection Property
Why Project Finance Teams Care
Markets
Outcomes
The Inflation Reduction Act changed the treatment of certain interconnection expenditures under the federal Section 48 investment tax credit.
The original DECH note described how qualifying projects smaller than 5 MW could include certain interconnection property costs in the credit-eligible basis.
Qualifying Interconnection Property
The historical framework concerned eligible upgrades or modifications to transmission and distribution systems that enabled project interconnection.
The note cited examples including certain solar, wind, storage, fuel-cell, biogas, and combined-heat-and-power investments.
Why Project Finance Teams Care
Interconnection costs can materially affect project economics, making incentive eligibility and documentation important components of investment screening.
Historical tax-policy commentary; tax law and eligibility may have changed since publication. Obtain current qualified tax advice.
Explore Distributed Energy Opportunities With DECH
Understand local market conditions, investment economics, and the practical requirements for distributed energy projects.
