Our expertise · Specialty Tax Incentives

Section 45X Advanced Manufacturing Credit Support

The credit follows what leaves your production line, so the evidence has to start there.

Section 45X is a production credit, not an investment credit: it is earned per unit of eligible component you produce in the United States and sell, such as a dollar amount per kilowatt-hour of battery-cell capacity or a percentage of production cost for electrode active materials and critical minerals. That makes product definitions, production counts, capacity ratings and sales records the evidence, not the invoice for the equipment that made them. Federal legislation enacted in July 2025 (Public Law 119-21) kept the credit but ended it for wind components after 2027, added restrictions on prohibited foreign entities and changed how integrated components count. Green Summit supports manufacturers and their tax advisors with the engineering and production documentation a defensible 45X claim rests on.

Licensed engineering firm
Engineered substantiation, not estimates
Founded 2014
Audit-ready documentation

Who this is for

Manufacturers producing solar, battery, inverter, wind or critical-mineral products in the United States, and the accounting firms preparing their 45X claims.

Manufacturers & Technology Companies Accounting & Advisory Firms

What we do

Map your products to the statute. We compare each product's specifications and bill of materials with the component definitions it is meant to meet, including the requirement that a battery module carry all the essential equipment needed for battery functionality.
Build the production record. We organize unit counts, capacity ratings, production-cost inputs and sales data by facility and tax year, so every credited unit traces to a product, a plant and a sale.
Document the supply chain. We assemble the bill-of-materials, supplier and direct-material-cost data your advisors need for the prohibited-foreign-entity material assistance test and, for components sold in tax years beginning after 2026, the 65% domestic integrated-component test.
Screen the facility history. We identify facts that change eligibility before anyone relies on a figure, such as production abroad, related-party sales and any prior Section 48C credit for the same facility.
Support elective pay and transfer. We prepare the technical facts your advisors need when you elect direct payment or sell the credit, so the record that supports the claim is the one the buyer or the IRS sees.

Our process

Screen products, plants and years. We establish what you make, where you make it, when it was sold and which phase-out year each sale falls in, before any unit is counted.
Confirm what your tax team needs. We agree the component list, the measurement basis for each product and the supply-chain evidence your advisors will test, so nothing is documented twice or not at all.
Deliver the engineering record. We hand off product-by-product documentation with the open questions listed, and we stay available to your advisors as guidance and the foreign-entity rules develop.

What you receive

A 45X technical support package: a product-to-component map, production and capacity schedules by facility and year, the supply-chain and direct-material-cost data behind the foreign-entity and integrated-component tests, and a list of the qualification questions that remain for your advisors. Your tax advisor determines the credit and the return position; credit amounts are never guaranteed, and we never present them as if they were.

What changed in 2026

Under federal legislation enacted in July 2025 (Public Law 119-21), Section 45X continues, with these changes:

• Wind energy components produced and sold after December 31, 2027 no longer qualify.

• Solar components, battery components and inverters keep the full credit through 2029, then step down to 75% in 2030, 50% in 2031 and 25% in 2032, with no credit after 2032.

• Applicable critical minerals, previously permanent, now phase down from 2031 and end after 2033. Metallurgical coal was added at 2.5% of production costs for coal produced through 2029.

• For tax years beginning after July 4, 2025, prohibited foreign entities cannot claim the credit, and components cannot include material assistance from them above set thresholds that rise each year.

• For components sold in tax years beginning after December 31, 2026, an integrated component qualifies only if at least 65% of its direct material cost comes from primary components produced in the United States.

Benefits

A claim built on production and sales evidence, product by product, rather than on a capacity estimate.
Early warning on the phase-out year, foreign-entity and integrated-component questions that can reduce or remove the credit.
One technical record that serves your tax advisor, a credit buyer and an IRS examiner.

Why Green Summit

Green Summit is a trusted consulting partner delivering end-to-end compliance solutions in specialty tax credits and incentives, building performance and advisory services. On a production credit, that means engineers who can read a bill of materials and a product datasheet working directly with your tax advisors, so the technical definition and the tax position are settled together rather than reconciled after the fact.

Founded in 2014 as a licensed engineering firm, we build every record to be audit-ready from day one, and our findings are engineered substantiation, not estimates.

Frequently asked questions

What is the Section 45X credit?

Section 45X is the federal advanced manufacturing production credit. It applies to eligible solar, wind, inverter and battery components and to applicable critical minerals that you produce in the United States and sell, at a fixed amount per unit or a percentage of production cost depending on the component. Your tax advisor determines the credit; our work supplies the engineering and production evidence behind it.

Is 45X still available after the 2025 legislation?

Yes, with new limits. Public Law 119-21 ended the credit for wind components sold after 2027, added a phase-out for critical minerals, added metallurgical coal and introduced foreign-entity and integrated-component rules. Solar components, battery components and inverters keep the full credit through 2029 before stepping down.

Does every component we produce qualify?

No. Each product has to meet a specific statutory definition, be produced in the United States or a U.S. territory and generally be sold to an unrelated person. Components made at a facility that previously received a Section 48C credit are excluded. We map each product before anyone counts units.

How do the foreign-entity rules affect us?

They can remove the credit entirely. A prohibited foreign entity cannot claim it, and components produced in tax years beginning after July 4, 2025 cannot include material assistance from such entities above a threshold that rises each year. Meeting that test depends on supplier and cost data, which is why we document the supply chain alongside production.

Can a manufacturer with little tax liability benefit?

Often, yes. Section 45X can be transferred for cash, and unlike most energy credits it allows a taxable manufacturer to elect direct payment for a limited five-year period. Both routes require registration and a clean technical record, which our package supports.

What do you need from us to start?

Product specifications and bills of materials, facility locations, production and sales data by tax year, supplier information for the main inputs and any history of Section 48C credits. Please share production data through the secure process we set up with you, not the website form.

Let's connect your production line to the credit.

Tell us what you manufacture, where you produce it and the tax years you are reviewing.

Program and technical references

Internal Revenue Code Section 45X, as amended by Public Law 119-21 (July 4, 2025) - reference

Congressional Research Service, The Section 45X Advanced Manufacturing Production Credit (IF12809, August 2026) - reference

Program information reviewed October 9, 2026. Current applicability, qualifications and program terms are confirmed for each engagement.

Or call 321-273-2200 · inquiry@greensummit.com