Clean Energy to Get Boost from New IRS Guidance

WASHINGTON, DC - The U.S. Department of Treasury released final guidance today for the clean electricity investment and production tax credits, setting standards that will allow power and energy storage investments to thrive for years to come. Established under the Inflation Reduction Act, the tech-neutral tax incentives, as they are called, will apply to all zero-carbon power generation and storage technologies.

The following is a statement from Kit Kennedy, managing director for the power sector at NRDC (Natural Resources Defense Council):

"These standards will allow companies to make long-term investment decisions, building a vibrant and resilient clean energy economy- while cutting the carbon pollution causing climate change.

"Since the Inflation Reduction Act became law, companies have announced more than $131 billion in clean-energy investments in nearly every state across the country. Now, with these new rules in place, the stage is set for an even stronger clean-energy jobs boom.

"These rules are an important step towards ensuring that only genuine carbon-free electricity qualifies for the incentives and that the American clean-energy Renaissance can continue."

Background:

Historically, solar, wind and battery projects have received federal tax credits, the Investment Tax Credit (ITC) and Production Tax Credit (PTC). These credits have lowered the cost of development for these clean-energy investments, helping to make them the fastest growing power sources in the nation.

The Inflation Reduction Act replaced these tax credits with a simple, tech-neutral framework that applies to any low-carbon electric generating technologies. The new IRS standards ensure that these tax credits flow only to electricity projects that are, in fact, low carbon. And they clarify how these tax credits can be transferred between entities, which ensures greater access to them.

NRDC (Natural Resources Defense Council) is an international nonprofit environmental organization with more than 3 million members and online activists. Established in 1970, NRDC uses science, policy, law and people power to confront the climate crisis, protect public health and safeguard nature. NRDC has offices in New York City, Washington, D.C., Los Angeles, San Francisco, Chicago, Beijing and Delhi (an office of NRDC India Pvt. Ltd).