In 2022, the Inflation Reduction Act (IRA) was enacted into law, becoming the most significant climate legislation ever passed in United States history. It fundamentally shifted the economic landscape for clean energy, providing investment, production, and excise credits designed to facilitate a broad transition away from fossil fuels and toward a sustainable energy system – with the ultimate goal of drastically lowering the country’s carbon emissions and slowing down climate change. The IRA provides a wide array of incentives that support the energy transition, including but not limited to: clean energy production, clean energy manufacturing, and energy efficiency.
This guide focuses on the IRA’s cornerstone: clean energy tax credits. The IRA tax credit provisions will potentially unlock hundreds of billions of dollars from corporations and other types of organizations, supporting the scale-up of clean energy projects and climate tech innovations. These new “tax investors” will benefit from dollar-for-dollar reductions in tax liability in exchange for their cash investment in the energy transition. The IRA’s tax credits represent a remarkable opportunity for corporations seeking to achieve their sustainability targets and support the energy transition while also reducing their tax burdens.
Download LevelTen Energy's Guide to Buying Transferable Tax Credits to learn:
- What transferable clean energy tax credits are and how they work
- How to purchase credits
- Key considerations for successful transactions
- How tax credits support sustainability programs
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