IRS publishes 2026 inflation factor and credit amounts for clean electricity
Taxpayers claiming the Section 45Y clean electricity production credit must use a 2.0570 inflation factor and apply 0.6 ¢ or 3.1 ¢ per kWh for electricity sold, consumed or stored in calendar year 2026.
The Internal Revenue Service issued Notice FR Doc No 2026-18105, publishing the inflation adjustment factor and applicable amounts for the Section 45Y clean electricity production credit for calendar year 2026.
The inflation adjustment factor for 2026 is 2.0570, calculated from the GDP implicit price deflator for 2025 (128.986) divided by the deflator for 1992 (62.707). The factor is identical to the one published for 2025.
Applying the factor, the base amount for 2026 is 0.6 cents (or $0.006) per kilowatt-hour, and the alternative amount is 3.1 cents (or $0.031) per kilowatt-hour.
Taxpayers must multiply the kilowatt-hours of electricity produced at a qualified facility by the applicable amount, subject to the facility meeting either the base-amount criteria or the alternative-amount criteria - such as a maximum net output of less than 1 megawatt, construction beginning before January 29, 2023, or compliance with prevailing-wage and apprenticeship requirements under Section 45Y(g).
The notice will be republished in the Internal Revenue Bulletin as required by 26 CFR 601.601(d)(2) and governs sales, consumption, or storage of electricity occurring in calendar year 2026.
Further reading