Reg. § 1.48D-1 Advanced manufacturing investment credit determined.
(a) Overview For purposes of section 46 of the Code, the amount of the advanced manufacturing investment credit under section 48D of the Code determined for any taxable year is the amount determined under section and this section and through and (the section regulations) (subject to any applicable provisions of the Code that may limit the amount determined under section ), for such taxable year with respect to any advanced manufacturing facility of an eligible taxpayer. of this section provides the general rules for determining the amount of a taxpayer's section credit for a taxable year. of this section provides rules coordinating the section credit with the rules of section 47 of the Code (relating to the rehabilitation credit). provides definitions that apply for purposes of section and the section regulations. provides rules relating to the definition of qualified property for purposes of the section credit. provides rules relating to the definition of an advanced manufacturing facility of an eligible taxpayer for purposes of the section credit. provides rules regarding the beginning of construction of property for purposes of the section credit. provides rules related to the elective payment election of the section credit. See for additional rules under section and (6) of the Code relating to applicable transactions that result in the recapture of section credits.
(b) Determination of credit Subject to any applicable sections of the Code that may limit the credit determined under section , the section credit for any taxable year of an eligible taxpayer with respect to any advanced manufacturing facility is an amount equal to 25 percent of the taxpayer's qualified investment for the taxable year with respect to that advanced manufacturing facility. A section credit is available only with respect to qualified property that a taxpayer places in service after December 31, 2022, and, for any qualified property the construction of which began prior to January 1, 2023, only to the extent of the basis of that property attributable to the construction, reconstruction, or erection of that property occurring after August 9, 2022. Under section , no section credit is allowed to a taxpayer for placing qualified property in service in any taxable year if the beginning of construction of that qualified property as determined under begins after December 31, 2026 (the date specified in section ).
(c) Coordination with section 47
(1) In general The qualified investment with respect to any advanced manufacturing facility of an eligible taxpayer for any taxable year does not include that portion of the basis of any property that is attributable to qualified rehabilitation expenditures, as defined in section and , with respect to a qualified rehabilitated building, as defined in section and .
(2) Example: Coordination with section 47 X Corp, a calendar-year C corporation, owns Building A, a certified historic structure. X Corp's adjusted basis in Building A is $100,000. Between August 1, 2024, and October 31, 2024, X Corp incurs $1 million to reconstruct, within the meaning of section and , Building A. X Corp places the reconstructed Building A, a qualified rehabilitated building, in service on November 15, 2024. Of the $1 million of capitalized expenditures incurred to reconstruct Building A (all of which would meet the definition of qualified investment), $250,000 also meets the definition of qualified rehabilitation expenditures (QREs). As such, X Corp's qualified investment in Building A is $750,000 ($1 million−$250,000). X Corp's qualified investment in Building A remains $750,000 even if X Corp does not determine a rehabilitation credit with respect to the $250,000 of QREs.
(d) Applicability date This section applies to property that is placed in service after December 31, 2022, and during a taxable year ending on or after October 23, 2024.
[T.D. 10009, 89 FR 84752, Oct. 23, 2024]