Section 48 Investment Tax Credit

The Section 48 Investment Tax Credit is a federal incentive that allows businesses to reduce their taxes by a percentage of the cost of certain renewable energy equipment, such as solar panels or wind turbines. When a business invests in qualifying clean energy assets, it can claim a tax credit that decreases its tax liability, encouraging renewable energy development. Essentially, it helps offset some of the costs of environmentally friendly projects, making them more financially attractive for businesses. The specifics of the credit, including eligible technologies and percentages, can vary based on current laws and regulations.