What’s next for IRA credits after the 2024 election?

Over the last several years, Congress and the Biden administration have made a significant investment in clean energy. The Inflation Reduction Act (IRA), in particular, has proven to be a key part of this initiative, providing billions in credits, grants and incentives to renewable energy projects and energy-efficient technologies from coast to coast.

However, the results of the 2024 election have created uncertainty as to the future of IRA credits. At this point, though, there are a lot of questions and very few answers.

What can you expect?

It is too soon to make any sweeping assessments regarding the impact of the election on the IRA. There is a general belief that the new Congress will attempt to roll back portions of the IRA, however, it is too soon to determine which changes will garner a consensus among Republicans.

While we anticipate changes, it simply too early to answer questions such as:

• Will there be significant changes to the IRA’s tax credits, grants and incentives?
• Which programs and regulations will be modified or cut, if any?
• Will there be any adjustments to the current tax credit timing and deadlines?
• What role will state and local policies play in the wake of any changes to IRA credits?

At this point, attempting to answer these questions would be an exercise in pure speculation.

Some of the provisions that could be impacted include offshore wind projects, electric vehicle tax credits, and a possible acceleration of the phase-out dates within the legislation. However, we’re unlikely to have insight into probable adjustments until Republicans agree on a budget for a potential reconciliation bill and begin negotiations on the contents of the resulting tax reform bill.

What should you do?

In the meantime, if you are a project owner who has received or anticipates receiving funding through the IRA, you should: