Federal tax credits, grants and loans: understanding what is in the Inflation Reduction Act (IRA) and Infrastructure Investment and Jobs Act (IIJA)

With the Inflation Reduction Act of 2022 (IRA) signed into law, it is critical for businesses to fully understand the landscape of federal incentive opportunities and how they may apply to their operations. The IRA includes over $350 billion in new and expanded incentives for energy efficiency, renewable and clean energy investments, fleet decarbonization, infrastructure improvements and other sustainability-related investments. When these incentives are combined with those in the Infrastructure Investment and Jobs Act (IIJA), signed into law in November 2021, the federal government is poised to make substantial investments in clean energy and sustainability through at least FY2026. The incentives are significant, particularly when coupled with available state and local tax credits and incentives to support investment. Companies need to understand the applicability, timing and process for disbursement of these incentives.

The discussion will include:

• An overview of incentive opportunities under IRA and IIJA and their broad applicability across multiple sectors and industries
• A discussion of key provisions:
  • IRC Section 48C – Advanced Energy Project Credit
  • IRC Section 45X – Advanced Manufacturing Production Credit
  • Fleet decarbonization incentives
  • Renewable energy tax credits
  • Other new and/or expanded tax credits, grants and incentives for investments in clean energy and sustainability
  • Direct-pay options and transferability of tax credits
• The importance of embedding federal, state and local incentives in your company’s capital investment strategy to help drive consistent return on investment

Panelists

• Mike Bernier, 
  Partner, Tax Credit Investment Advisory Services, Ernst & Young LLP
• David Camerucci, 
  Manager, Sustainability Tax and Incentives Services, Ernst & Young LLP
• Akshay Honnatti, 
  Senior Manager, US Sustainability Tax Leader, Ernst & Young LLP
• Leslie Macek, 
  Partner, Location Investment, Credits and Incentives, Ernst & Young LLP
• Scott Roberti, 
  Managing Director and Leader, Indirect Tax & State/Local Policy, Ernst & Young LLP
• Brian Smith,  
  Principal, EY Global/Americas Location Investment, Credits and Incentives Leader

Moderator

• Paul Naumoff, 
  Principal, Ernst & Young LLP and EY Global Sustainability Tax Co-Leader

EY webcast managed and produced by the NTD Tax Knowledge Services Group, Washington, DC: Lynn Fairfax