The Inflation Reduction Act (IRA) of 2022 creates valuable new business opportunities for the renewable energy industry. In addition to restoring the full federal Investment Tax Credits and Production Tax Credits for solar, wind and other renewable energy projects, the IRA makes tax credits available for stand-alone storage projects, green hydrogen projects, and other new classes of renewables. The IRA also makes additional new incentives available to project developers, including:
- Bonus tax credits for projects using U.S. domestic content, built on brownfield sites, serving disadvantaged economic communities and Native American tribal land, and that are built on or near abandoned oil, gas and coal infrastructure sites
- Interconnection costs now eligible for Investment Tax Credit
- Direct Pay option
- Ability to transfer tax credits to third parties
On November 15, 2022, Pierce Atwood Energy Infrastructure partners Merrill L. Kramer and Kris J. Eimicke, and Karin D. Berry, managing director at NT Solar, held a webinar to cover the practical steps needed, and pitfalls to avoid, for your projects to secure these valuable benefits. They covered these questions and more:
- How do these provisions work?
- What are the requirements to secure these economic benefits?
- When does your project need to start construction or be placed in service to qualify?