The Inflation Reduction Act (IRA) introduced and expanded several clean energy federal tax credits making them more advantageous and accessible for businesses to utilize. These changes focused on providing tax incentives for renewable and sustainable energy technology infrastructure development and can be substantial dollar amounts (30-50% of eligible investments). Within the IRA, Section 6418 was created to allow entities to transfer all or a portion of an eligible credit to an unrelated transferee taxpayer for cash. The ability to transfer tax credits allows entities who do not have sufficient tax liability to utilize the tax credits they generate and thus monetize these credits.
During this session, our team will cover various available clean energy tax credits, IRS guidance on cash payment deferral of the credits, arbitrage opportunities through purchasing credits and more.
Learning Objectives:
- Understand the potential benefits of purchasing tax credits including the benefits of cash payment deferral and arbitrage opportunities
- Gain insight into energy tax credits and incentives available to businesses, empowering participants to navigate the complex landscape of incentives, optimize tax savings and finance sustainable projects effectively
- Develop actionable strategies for leveraging energy tax credits and incentives to drive sustainable growth and innovation
