Not all renewable energy tax credits are the same. Different project types generate different credits with different structures, values, and bonus eligibility. This guide explains what's available and helps you identify which credits match your tax situation.
Credit Types
Each credit type works differently. Understanding the structure helps you evaluate what you're buying.
A percentage-based credit calculated on the cost basis of a qualifying energy project. The most common credit type on the DealStar marketplace.
A per-kilowatt-hour credit based on actual electricity generated by a qualifying project over a 10-year period. Credits are generated annually.
A per-unit credit for domestic manufacturing of clean energy components -- solar cells, wind blades, battery cells, inverters, and critical minerals processing.
Side-by-Side
Key differences at a glance to help you evaluate which structure fits your needs.
| Feature | ITC (48E) | PTC (45/45Y) | 45X Manufacturing |
|---|---|---|---|
| Credit Timing | One-time, year placed in service | Annual over 10 years | Per unit, as produced |
| Credit Basis | % of project cost | Per kWh generated | Per unit manufactured |
| Prevailing Wage Multiplier | 5x (6% to 30%) | 5x (0.3c to 1.5c/kWh) | Not applicable |
| Recapture Period | 5 years | None (production-based) | None |
| Transferable Under 6418 | Yes | Yes (year-by-year) | Yes |
| Bonus Credit Eligible | Domestic content, energy community | Domestic content, energy community | No bonus credits |
| Marketplace Availability | Most common | Growing | Limited, large credits |
Bonus Credits
Qualifying projects may receive bonus credits on top of the base amount. These adders can significantly increase the value of a credit.
Projects using a threshold percentage of domestically manufactured components qualify for a 10 percentage point increase to the ITC or a 10% increase to PTC. Learn more
Projects located in energy communities -- areas with closed coal mines, retired coal plants, or significant fossil fuel employment -- receive a 10 percentage point ITC increase or 10% PTC increase.
Solar and wind projects under 5 MW located in low-income communities or on tribal land can receive additional ITC bonus credits of 10-20 percentage points. Allocation is competitive.
Projects that pay prevailing wages and meet apprenticeship requirements receive the full credit rate (30% ITC or 1.5c/kWh PTC) instead of the base rate. Most marketplace credits meet this threshold. Learn more
Matching Credits to Your Situation
The right credit depends on your tax liability profile, risk tolerance, and timeline.
ITC credits provide the biggest single-year offset. A $5M ITC credit purchased at $0.90/dollar saves $500K in the year of purchase. Ideal for profitable C corporations looking to reduce a specific year's tax bill.
PTC credits generate annual credits over 10 years. If your tax liability is consistent year over year, a PTC stream provides predictable, long-duration tax reduction. Each year's credit is transferred separately.
45X manufacturing credits can be among the largest on the platform. If you need to offset a substantial tax position, 45X credits from domestic manufacturers may provide the scale you need.
Use our qualification wizard to check if your entity qualifies, then try the savings calculator to estimate your benefit. Or request a demo and our team will walk you through the options.