tax credits

Last week the US Department of Treasury and Internal Revenue Service (IRS) released guidance on tax credits included in the Inflation Reduction Act (IRA), which allow state and local governments, nonprofits and other entities to benefit from renewable energy tax breaks.

Clean energy trade bodies ACP, ACORE and SEIA have denounced an attempt by Republicans to roll back the Act, which has spurred unprecedented investment in the US market.

The US Treasury Department yesterday released guidance on the bonuses included in the Inflation Reduction Act (IRA) for historically fossil-fuel producing ‘energy communities’.

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’.