Clean energy projects completed after 2024 in the U.S. could access innovative, technology-neutral tax credits under the Inflation Reduction Act (IRA). These credits, similar to existing incentives, target facilities achieving net zero carbon emissions. Guidance from the Treasury Department will clarify eligibility.
The credits, effective from January 1, 2025, will replace existing production and investment tax credits for wind and solar projects. They will also extend to qualified energy storage facilities and rapidly evolving clean energy technologies.
More notably, they phase out by 2032 or when U.S. electricity production emissions reach 25% of 2022 levels or lower.
A Shift Towards Sustainable Finance
The U.S. power sector’s greenhouse gas emissions have significantly decreased in 2023 compared to 2022, according to the Environmental Protection Agency. The drop in emissions is mainly due to shifts in the mix of fossil…
