Clean electricity producers may qualify for a federal tax credit of up to 3.1 cents per kilowatt-hour in 2026 after the IRS published its annual inflation adjustment for the Clean Electricity Production Credit. The IRS announced the updated amounts in a Federal Register notice published September 4. The credit, established under Section 45Y of the Internal Revenue Code, provides a tax incentive based on the amount of qualifying clean electricity a taxpayer produces.
For 2026, the inflation-adjusted base credit is 0.6 cents per kilowatt-hour, while qualifying facilities eligible for the higher alternative amount can receive 3.1 cents per kilowatt-hour.
