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Fall 2022

The Inflation Reduction Act provides tax credits for the development of renewable-energy sources such as wind farms.

Inflation Reduction Act opens door for energy investment

September 30, 2022

Carbon reduction and renewable technology are two focal points of the Inflation Reduction Act (IRA), which was signed into law in August. The IRA delivers several provisions to help boost investment in U.S. energy manufacturing, promote further development of clean-energy sources, and accelerate decarbonization efforts.

Barr has analyzed this historic legislation to identify how our clients can leverage its funding opportunities. One major opportunity is in clean-energy development, which the IRA prioritizes in the fight to combat climate change. The legislation includes $10 billion in investment-tax credits to build US-based clean-tech manufacturing facilities that will help meet demand for clean-energy products such as electric vehicles, wind turbines, and solar panels.

The new legislation also supports the wind- and solar-development industries through extensions to the Production Tax Credit and Investment Tax Credit. Additional tax credits and grants support development of emerging technologies, including hydrogen, carbon capture, and storage, as well as the production of biofuels and infrastructure for sustainable aviation fuel.

What does the IRA mean for your market?

Barr brings a range of engineering and environmental experience with projects that drive a more sustainable energy future. Follow the discussion on our Insights blog, where we dive deeper into this topic and break down key provisions specific to the oil & gas, power, mining, and manufacturing sectors.

About the author

Nick Palatiello focuses on market and strategy development for the power and manufacturing sectors and works with clients in a variety of capacities, from developing strategies for addressing PFAS to constructing solar facilities on brownfield sites. Nick works closely with clients to understand market and regulatory drivers and help them solve complex issues related to emerging contaminants and energy developments.