Yes, the Inflation Reduction Act of 2022 introduces new tax credits for businesses as part of its extensive energy-related provisions. Here are some key credits and incentives:
New Business Energy Tax Credits
- Clean Electricity Investment Credit: This credit supports investments in new clean electricity generation facilities.
- Clean Electricity Production Credit: Encourages the production of clean electricity.
- Advanced Energy Project Credit: Aimed at promoting domestic manufacturing of clean energy technologies.
- Zero-Emission Nuclear Power Production Credit: Supports the production of electricity from zero-emission nuclear power facilities.
- Sustainable Aviation Fuel Credit: Encourages the use of sustainable aviation fuels.
- Energy Efficient Commercial Building Deduction: Incentivizes businesses to make their buildings more energy-efficient.
- Clean Hydrogen Credits: Support the production and use of clean hydrogen.
Bonus Incentives
- Prevailing Wage & Apprenticeship: Additional credits for projects that meet prevailing wage and apprenticeship requirements.
- Domestic Content Bonus: Extra credits for projects using a significant percentage of domestic content.
Credit Monetization
- Direct Pay Option: Allows non-taxable entities like state and local governments to receive direct payments from the IRS for tax credits.
- Credit Transfer: Enables eligible taxpayers to transfer credits to unrelated parties.
These credits and incentives are designed to promote a transition to cleaner energy and support businesses in investing in sustainable technologies.
Updates for 2025:
While there are ongoing updates and clarifications to the structure of IRA tax credits, businesses should continue to monitor regulatory guidance and technical updates to ensure compliance and maximize incentives.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/are-there-any-new-tax-credits-for-businesses-under-the-inflation-reduction-act/
