The clean energy provisions of the Inflation Reduction Act of 2022 – a historic effort to encourage the development of clean energy and reduce carbon emissions

By Jameson L. Calitri, Vanessa Richelle Wilson and Drew M. Young
DLA Piper
August 17, 2022
Category: Carbon, Climate & Bioenergy
Region: United States

President Joe Biden signed into law the Inflation Reduction Act of 2022 (HR 5376) (the IRA or the Act),on August 16, 2022. …The IRA includes a number of key changes relevant to clean energy in the US, among them the extension of the Investment Tax Credit and Production Tax Credit and the addition of expanded tax credits for other technologies and for manufacturing of clean energy equipment as well as terms allowing parties to more easily monetize the tax credits. …The expanded tax credits will encourage the development of projects deploying emissions-free generation on a technology-neutral basis.  The Act also includes tax credits for stand-alone energy storage which to date has only qualified when paired with solar or other projects claiming the ITC. …The Production Tax Credit (PTC) is extended to projects (wind, solar, geothermal, biomass, hydropower) beginning construction before January 1, 2025. 

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