Home › §48E ITC transfers

§48E Bonus Credits: Prevailing Wage, Energy Community and Domestic Content

Updated October 29, 2026 · By the Veritas Tax Credits editorial team (how we write and check) · Educational only, not tax advice

A §48E credit can be 6%, 30% or more of project cost, depending on wage rules and bonuses. A buyer buying "a credit" should know which rate the seller is claiming and how it is proved, because a failure lowers the credit amount and, if the buyer bought the larger amount, creates an excess credit problem.

How the rate builds

Layer	Effect	Condition (IRS; §48E)
Base rate	6% of qualified investment	Qualified facility or storage placed in service after 2024
Prevailing wage and apprenticeship	Up to 30% (5x the base rate)	Meets the wage and apprenticeship rules, or the project is under 1 MW AC, or construction began before the cutoff date set by the statute
Energy community	+10 points (+2 on the 6% base rate)	Placed in service in an energy community (brownfield, certain statistical areas with fossil-fuel employment or coal-related closures)
Domestic content	+10 points (+2 on the 6% base rate)	Steel, iron and manufactured products meet the adjusted percentage
Low-income communities	Additional points for certain small projects	Requires an IRS capacity allocation; ask for the letter

For example, a project at 30% with the energy community and domestic content bonuses would be at up to 50% (30 + 10 + 10), per the IRS description. Many projects have one bonus or none, so do not assume the top rate.

Evidence to request

Prevailing wage and apprenticeship: certified payroll, apprentice ratios and labor-hour records, plus any cure payments. If a project fails, the multiplier can be lost; Crux says a prevailing wage failure during the five-year period can also recapture the increased amount (with a cure window).
Energy community: the IRS list or map category the site falls into, and the date it was tested (energy community guide; Notice 2023-29; map guide).
Domestic content: manufacturer certifications and the safe-harbor tables in Notice 2023-38 (domestic content guide). For §48E the required adjusted percentage depends on when construction began: 40% (before June 16, 2025), 45% (June 16 to Dec. 31, 2025), 50% (2026) and 55% (after 2026), per the statute.

Why buyers care

The more bonuses a credit carries, the more diligence it needs and the more you depend on the seller's indemnity. Ask each seller which rate it is claiming, how it proves each layer, and what happens to your price if a layer fails. Our diligence checklist and agreement terms guide cover this.

Back to the §48E buyer guide.

Educational information only, not tax, legal or investment advice, and no outcome is promised. Rules and figures were checked against the cited sources on October 29, 2026; they change, so confirm with your CPA and counsel before acting. Market figures are third-party data and are not Veritas quotes. See our disclaimer.

Frequently asked questions

What is the maximum §48E credit rate?

The IRS describes a 6% base, up to 30% with prevailing wage and apprenticeship requirements, plus 10 percentage points each for domestic content and for an energy community. That totals up to 50% for a project that meets all of them, before any low-income communities adder.

What if a project fails the prevailing wage rules?

It can lose the multiplier and fall back to the base rate unless the failure is cured under the rules. Buyers should require records and an indemnity covering credit loss.

How is an energy community proven?

By showing the site falls in a brownfield site, a statistical area with qualifying fossil-fuel employment, or a coal-closure census tract using the IRS lists and notices such as Notice 2023-29. The seller should document the category and the date tested.

What domestic content percentage applies?

For §48E, the adjusted percentage is 40% for construction beginning before June 16, 2025, 45% from then through 2025, 50% in 2026 and 55% after 2026, according to the statute.

Sources