![]() ![]() ![]() Two of the most valuable types of tax credits that are eligible for direct payments under the IRA are the Investment Tax Credit (ITC) and Production Tax Credit (PTC).īoth types of credits were expanded to assist with financing renewable energy projects with the hope of spawning a new era of clean energy projects where ownership is retained by public and other tax-exempt entities. This new ability to receive direct cash payments is available for many of the different credits and programs funded by the IRA. One of the most innovative aspects of the IRA involves its creation of a direct-payment mechanism that is available to public entities. Investment Tax Credits (ITC) and Production Tax Credits (PTC) The Act expressly allows these incentives to be used for installing energy facilities like solar arrays and wind turbines, installing certain water and sewage facilities, converting fleets of gas-powered vehicles to electric and hybrid vehicles (for example fleets of police cars, ambulances, fire trucks, school buses, garbage trucks, snow plows), and electric and other alternative fuels vehicle charging stations. ![]() Specifically, the federal government has made $369 billion available over the next decade for new and existing programs with the goal of a 40% reduction in the nation’s carbon emissions by 2030. The IRA, however, now allows public entities to have access to these incentives. ![]() The IRA allocates funding to provide incentives that reduce renewable energy costs for an expanded number of organizations including public educational institutions, school districts, states, counties, and local municipalities. Previously, renewable energy incentives were only available to private tax-paying entities. Riley, P.E.īy now, you are likely aware that the federal government is making the largest investment in climate and energy improvements in American history, known as the Inflation Reduction Act (IRA). ![]()
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