What is in the Inflation Reduction Act of 2022? We summarize. – A breakdown of what it means and where it’s headed.
The Inflation Reduction Act: Key Provisions Regarding the ITC and PTC – “The Act substantially changes and expands existing federal income tax benefits for renewable energy, including the existing Section 45 production tax credit (“PTC”) and Section 48 investment tax credit (“ITC”), and adds Section 45Y, the Clean Energy Production Tax Credit, and Section 48E, the Clean Electricity Investment Credit to the Internal Revenue Code. Combined, these provisions extend the ITC and PTC at their full credit rates for eligible facilities on which construction begins before 2034. The Act also includes direct-pay options for certain taxpayers, and permits most taxpayers to sell certain tax credits. The Act also contains other noteworthy changes, including expansions and amendments to the existing Section 45Q carbon oxide sequestration credit, the Section 30D clean vehicle credit, and credits for homeowners adding certain renewable energy and efficiency improvements to their homes, as well as new provisions aimed at mitigating the effects of climate change, such as a new clean hydrogen production credit.”
An Insightful Q&A Webinar on the Inflation Reduction Act – Norton Rose Fulbright hosted an insightful webinar on the IRA and during so, received over 800 questions. Here they address the ones that are of the broadest interest to the renewable energy industry.
Currents Ep196: Inflation Reduction Act – Keith Martin, David Burton and Hilary Lefko have a lively discussion about the Inflation Reduction Act’s effect on deals.