IRC §45 · production credit

Section 45: selling the Renewable Electricity Production Credit

The original production tax credit. No new facilities qualify, but thousands of existing ones still earn it, year by year, for the rest of their credit period.

Verified 11 Oct 2026 · IRS Form 8835, Renewable Electricity Production Credit

Who earns it and how it is measured

The credit is earned on each kilowatt-hour of electricity produced from wind, solar, geothermal, biomass, hydropower and the other listed renewable resources at a qualified facility, and sold to an unrelated person^[1]. Each facility type is defined with a construction deadline: construction must have begun before 1 January 2025^[1]. Facilities started later use §45Y.

The statutory amount is 0.3¢ per kWh, multiplied by five where the facility meets the prevailing wage and apprenticeship requirements or an exception applies; both are adjusted for inflation each year^[1]. The credit generally runs for 10 years from the date the facility was placed in service^[1].

Wind facilities that began construction in 2017 through 2021 earn a reduced credit under the wind phase-out in §45(b)(5); check the reduction that applies to your start year^[1].

Selling it

Like other production credits, §45 is sold separately for each facility and each tax year of its 10-year period^[2]. An owner can therefore sell the remaining years of an older facility one year at a time.

1. Register each facility, and renew the registration for every year you sell^[3]. Allow at least 120 days before the return’s due date^[4].
2. Claim on Form 8835^[5] and report the transfer on Form 3800, Part III, column (f)^[6].
3. Attach the transfer election statement to an original, timely return^[7].

What buyers ask for on a §45 deal: metered output and sales records for the year; evidence that construction began before 2025 and of the placed-in-service date (which fixes the remaining credit years); prevailing wage and apprenticeship records if the five-times amount is claimed; and any bonus evidence.

Common mistakes

• Mixing up §45 and §45Y forms. §45 is Form 8835^[5]; §45Y is Form 7211^[8].
• Overstating the remaining credit period. The 10 years run from the original placed-in-service date^[1].
• Excessive transfers. If the buyer claims more than the facility actually earned, the buyer owes the excess plus 20% unless it shows reasonable cause^[2].

Frequently asked questions

Is §45 still transferable after the 2025 law?

Yes. The renewable electricity production credit remains on the §6418 list^[2], and it is not one of the credits barred from transfer to specified foreign entities.

What is the difference between Form 8835 and Form 3468?

Form 8835 claims the §45 production credit^[5]; Form 3468 claims investment credits such as §48, §48E and §48C^[9].

Market price

About $0.917 on average in 2026; $0.92 to $0.96 for investment-grade sellers.^{[Cenet Capital]}

Market estimate, not an offer. Prices move with buyer demand, deal size, seller credit quality, insurance and foreign-entity exposure. Run your own figures in the Credit Value Estimator, or compare every published report on the prices page.

Deadlines for §45

1. 31 Dec 2024
   Last day to begin construction under §45 and most of §48

   Facilities and most energy property must have begun construction before 1 January 2025 to use the legacy credits. Later projects use §45Y or §48E.