Tax Incentives and the Inflation Reduction Act

Renewable Energy SmartPod

It's all happening! The U.S. Congress finally took action to try to stem the tide of climate change. The Inflation Reduction Act (IRA) includes $369 billion of climate and clean energy initiatives -- and tax incentives represent a huge chunk of that amount.
Lauren Collins, a partner at Vinson & Elkins, joins the show to explain how the plethora of tax incentives in the IRA stand to boost the deployment of renewable energy in the U.S. From Production Tax Credits and Investment Tax Credits to various Bonus Credits and the potential for investment funds and retail investors to start trading in new tax credit markets, Collins covers it all. She also highlights one key area of the energy puzzle that the IRA has unfortunately overlooked.
Key Highlights
3:44 - The most important tax aspects of the bill - PTC, ITC, Standalone Storage, Bonus credits
6:00 - The new technology neutral credit regime and leveling the playing field for smaller players
9:09 - Credit flexibility provisions (Direct pay and Transferability)
12:20 - Bonus credits and "Stacking" (Domestic Content, Energy Community and Low-Income)
17:10 - Prevailing wage provisions
19:26 - What about Hydrogen, Nuclear and Carbon Capture Utilization and Storage (CCUS)?
23:38 - Making room for Manufacturing, Minerals and Mining tax credits
26:15 - Which aspects of the IRA are overhyped?
28:21 - A new industry and marketplace for tax credits and tax professionals
29:30 - The 'missing piece' in the legislation
30:27 - Which aspects of the legislation are flying under the radar? Transmission misses out
33:30 - Bold predictions - Credit investment funds enter financial markets ... and so do retail investors!
More resources from Vinson & Elkins
Renewable Reboot: A Download on the Inflation Reduction Act of 2022 – Clean Energy Tax Provisions

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