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