### Question
What does applicable capacity mean?


### Answer
**Applicable capacity** has the following meaning in *26 U.S.C. § 48*:

> 15 megawatts or a mechanical energy capacity of more than 20,000 horsepower or an equivalent combination of electrical and mechanical energy capacities

#### Citation:
  - *26 U.S.C. § 48*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter A-Determination of Tax Liability > PART IV-CREDITS AGAINST TAX > Subpart E-Rules for Computing Investment Credit**

