Clock is ticking for manufacturers to get maximum tax benefits on new projects under the Inflation Reduction Act

The Inflation Reduction Act of 2022 (IRA) includes the largest legislative energy incentive in U.S. history, promoting the transition to efficient use of renewable energy. It includes over 70 separate investment, production or excise tax credits, most of which are effective through 2032. However, manufacturers and other entities that are eligible for the tax incentives can preserve maximum benefits now if they can begin construction on qualified projects leading up to the end of 2022.

Manufacturers could get the tax benefit related to an in progress or planned project at an existing facility or if they produce renewable energy equipment components. Almost any entity with environmental, social and governance (ESG) initiatives will likely benefit from use of IRA tax incentives.

The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Tax information, if any, contained in this communication was not intended or written to be used by any person for the purpose of avoiding penalties, nor should such information be construed as an opinion upon which any person may rely. The intended recipients of this communication and any attachments are not subject to any limitation on the disclosure of the tax treatment or tax structure of any transaction or matter that is the subject of this communication and any attachments.