On September 4, 2026, the IRS published the 2026 inflation adjustment factor and reference prices for calculating the IRC Section 45Y clean electricity production tax credit (PTC), which applies to the sales, consumption or storage of electricity produced in the United States or a possession at a qualified facility under IRC Section 45Y(c)(1).

The inflation adjustment factor for calendar year 2026 for purposes of IRC Section 45Y(c)(1) is 2.0570.

For facilities eligible for PTC under IRC Section 45Y(a)(2)(A), the PTC for the sales, consumption or storage of electricity is 0.6 cents per kilowatt hour on the sale of electricity from all eligible technologies. The rate for facilities eligible for PTC under IRC Section 45Y(a)(2)(B), which applies if prevailing wage and apprenticeship requirements are met, is 3.1 cents.

For example, if a qualified facility produced 1m kilowatt hours in 2026, the credit would be 1m x $.006 x 2.0570, which equals $12,342 (or 1m x $.031x 2.0570, which equals $61,710, if prevailing wage and apprenticeship requirements are met).

For more information on the IRC Section 45Y credit, see Tax Alert 2025-0343.

Implications

Taxpayers that have projects that will generate 45Y credits or that have or are considering purchasing 45Y credits under IRC Section 6418 should update their calculations/estimates accordingly.