Biden Signs Climate Bill With Transformative Changes to Clean Energy Tax Incentives

The Inflation Reduction Act ushers in the largest clean energy tax credit package in US history.

Key Points:

• Wind and solar tax credits receive a multi-year extension at full rates, and solar projects are eligible for the production tax credit.

• New tax credits are available for emerging technologies, including energy storage and clean hydrogen.

• Carbon capture tax credit rules are simplified and expanded.

• New manufacturing tax credits are available to support and grow the clean energy supply chain in the US.

• Most tax credits may be converted to cash payments from the Treasury Department under a new direct pay program or sold in the market under new tax credit transfer procedures.

Please see full Alert below for more information.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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