Hazel helps you navigate Section 45X eligibility, compliance, and incentives—faster, clearer, and backed by AI.
Section 45X of the Internal Revenue Code, introduced by the Inflation Reduction Act, provides a production tax credit for U.S. manufacturers of clean energy components. This incentive aims to strengthen domestic supply chains, create jobs, and accelerate the transition to clean energy by making it financially attractive to manufacture key components in the United States.
Solar cells, photovoltaic wafers, modules, and panels
Blades, nacelles, towers, and offshore foundations
Battery cells, modules, electrode active materials
Central, utility, commercial, and residential inverters
Lithium, cobalt, nickel, graphite, and rare earth elements
Heat pumps, electric vehicle powertrains, and more
Section 45X credits are transferable, allowing manufacturers to monetize credits even without sufficient tax liability.
To qualify for Section 45X tax credits, manufacturers must meet specific criteria established by the IRS. Hazel helps you navigate these requirements and maximize your credit potential.
Production must occur within the United States at a qualified manufacturing facility. The facility must be owned or leased by the taxpayer claiming the credit.
Manufacturers must produce qualifying clean energy components as defined in the IRS guidance. Components must meet specific technical specifications and quality standards.
Components must be sold to an unrelated party or used in the taxpayer's trade or business. Related-party transactions may be subject to additional scrutiny and requirements.
Manufacturers must maintain detailed records of production volumes, sales, technical specifications, and other relevant information to substantiate credit claims during IRS audits.
Credits must be properly claimed on federal tax returns with all required forms and schedules. For credit transfers, additional documentation and reporting is required.
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Disclaimer: Hazel AI provides general information and is not legal or tax advice. Please consult a qualified advisor before making credit claims or tax filings.
Access authoritative information about Section 45X from government agencies and official sources. These resources provide detailed guidance on eligibility, credit calculations, and compliance requirements.
Official IRS notices, regulations, and guidance documents on Section 45X implementation and compliance.
View IRS ResourcesTreasury Department guidance, FAQs, and policy documents related to Section 45X implementation.
View Treasury ResourcesDOE resources on clean energy manufacturing, technical specifications, and industry standards.
View DOE ResourcesFull text of the Inflation Reduction Act and legislative history related to Section 45X.
View IRA TextExplore our collection of in-depth articles on Section 45X and clean energy tax credits.
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