tax credits

The Inflation Reduction Act (IRA) is set to boost investment into US renewable energy deployment and manufacturing from US$64 billion in 2022 to US$114 billion by 2031, according to research from Wood Mackenzie, though a mismatch between solar deployment demand and domestic manufacturing capacity may see the sector’s domestic profile lag behind.

The US Department of the Treasury and the Internal Revenue Service (IRS) have requested stakeholder input on the climate and clean energy tax incentives included in the country’s Inflation Reduction Act (IRA).

The US could exceed 50GW of solar manufacturing capacity by the end of this decade with the right application of incentives included in the country’s newly passed Inflation Reduction Act.

President Joe Biden used his first State of the Union address to emphasise the need for more renewables investment and tax incentives to speed up solar deployment.

For years California, Texas and Florida have dominated the US solar market, but backed by the investment tax credit, strong state-specific renewables standards and falling costs, new states are coming to the fore. Molly Lempriere takes a look at what is driving them, and the hurdles they face if they are to challenge the ‘Big Three’.

US-based solar manufacturers have enthusiastically backed proposed tax credits that they say could enable the country to meet its PV equipment demands domestically while creating tens of thousands of new jobs.

Senator Jon Ossoff has introduced legislation that would establish a tax credit for US-based solar manufacturers to help them better compete with Chinese rivals.

Department shares plans to ‘modify the relevant rules in the near future’ but adds scant detail in laconic response to bipartisan senator coalition, who had requested one-year extension.

Businesses can claim up to US$23,600 if they install solar for self-consumption.