Inflation Reduction Act tax credits for the distribution, transportation and logistics industries

The Inflation Reduction Act (IRA) was signed into law on Aug. 16, 2022, and with $738 billion in funding, it has proved to be extremely influential to a wide variety of taxpayers. $270 billion of that funding is dedicated to energy incentives that cover 70 separate energy property types that span a wide range from basics like solar and geothermal to more specific semiconductor manufacturing.

IRA tax credit energy projects

• Wind, solar and hydroelectric – These are projects many taxpayers can easily take advantage of simply by putting solar panels on the roof of their facility or on a spare acre of land on their property.
• Electric vehicles (EV) and charging stations – Electric vehicles are becoming increasingly prominent for personal use, but they are also becoming equally popular in municipalities. School districts are using electric buses and electric vehicles are being used for delivery services around communities. This can also be used by distribution companies looking to convert from diesel powered vehicles to electric vehicles. While there is a greater cost upfront, there is greater longevity and dependability on an electric vehicle from a maintenance perspective.
• Biomass, combined heat and power and geothermal – Manufacturers and distributors are also pivoting towards geothermal power, an IRA credit that will last well into the 2030s. With geothermal power, an organization can tap into the earth’s natural heating and cooling system that stays at a constant 55 degrees just eight feet underground. In most parts of the country, geothermal works year-round to heat and cool.
• Renewable and low-carbon fuels – These incentives make it more attractive for logistics companies to adopt clean energy solutions. By transitioning to low-carbon fuels, logistics companies can reduce their carbon footprint and contribute to environmental sustainability.