Inflation Reduction Act -

Perhaps the most significant recent develop- ment in the area of alternative energy, the Infla- tion Reduction Act of 2022 (IRA) offers approxi- mately USD270 billion in tax incentives to help combat climate change. Its provisions have already begun to transform the American manu- facturing and clean energy landscape, expand- ing the economic appetite for emerging tech- nologies, generating renewed development of domestic manufacturing, and providing renew- able energy projects with a decade-long invest- ment tax credit (ITC) for investment in qualified facilities. The IRA seeks to accomplish these goals through direct incentives to entities on both the supply and demand sides of the clean energy industry. Specifically, targeted tax credits were established for manufacturers in the clean energy supply chain and for those seeking to deploy clean energy projects, which, in turn, are creating additional demand for the products in that supply chain.

Originally published by Chambers and Partners - August 2023.