The Federal Investment Tax Credit (ITC) in 2026: Which One Applies?

"The federal ITC" is not one credit. The Internal Revenue Code has several investment credits that share a mechanic (a percentage of what was invested in qualifying property) and sit together on IRS Form 3468. Which one applies depends on the type of property, when construction began and when it was placed in service. This page sorts them and shows which can be sold to a buyer under §6418.

The federal ITCs at a glance

Credit	What it covers	Status in 2026	Transferable under §6418?
§48E clean electricity investment credit	Qualifying generation and storage facilities placed in service after 2024	Available. Wind and solar face construction and in-service deadlines; storage is outside them	Yes
§48 energy credit (legacy)	Energy property for projects whose construction began before 2025	Continues for those projects	Yes
§48C advanced energy project credit	Qualifying advanced energy projects that received a Treasury allocation	Governed by its allocation and project rules	Yes
§47 rehabilitation credit	Qualified rehabilitation of certified historic structures: 20% of qualified expenditures, taken ratably over five years	Available under its own rules	No, it is not on the IRS list of transferable credits
§25D residential clean energy credit	Homeowner solar, battery and similar systems	Ended for expenditures made after December 31, 2025	No

The IRS Form 3468 page lists the rehabilitation, energy and advanced energy project credits as the components of the investment credit. The transferable list is in the IRS transferability FAQs.

How big is the §48E ITC?

The §48E credit has a 6% base rate, which becomes 30% when the prevailing wage and apprenticeship requirements are met (or the facility is under 1 MW AC). Energy community and domestic content bonuses add 10 percentage points each. See the bonus credit guide.

ITC or PTC?

A facility cannot claim both the §48E investment credit and the §45Y production credit. The ITC is determined once, for the year the facility is placed in service, and is subject to a five-year recapture period. The PTC is earned over roughly ten years of output. Compare them in §48E vs other credits and PTC explained.

Which ITC can a buyer purchase?

A buyer who is not developing a project cannot claim a credit directly. It can buy an eligible one from a seller that can: §48E, legacy §48 and §48C credits are all on the IRS transferable list, and for most buyers §48E offers the broadest set of projects. The buyer needs the IRS registration number, files the transfer election statement, bears recapture risk unless the contract shifts it and, if it is an individual or closely held business, faces the passive activity limits. Start with the §48E buyer guide and how §6418 works.

Which one do I have?

• Homeowner with solar installed in 2025 or earlier: the §25D credit, claimed on the return for the year of installation. An expenditure is made when installation is complete.
• Business that owns a new solar or storage facility: §48E, or §48 if construction began before 2025, or the PTC under §45Y instead.
• Developer or owner without enough tax liability: may be able to sell the credit under §6418 (selling tax credits).
• Company or individual with federal tax to reduce: may buy a transferred credit, subject to the §38(c) and §469 limits (who qualifies and who can buy).

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 31, 2026; they change, so confirm with your CPA and counsel before acting. Veritas does not offer or solicit investments. See our disclaimer.