Talking Tax Energy Companies Weigh New Rules for Tax Credit Boosts
Clean energy developers and investors trying to make the most of the credits in President Joe Biden's tax-and-climate law are evaluating how new requirements to get the boost are impacting projects.
The tax-and-climate law devotes $374 billion to support climate and energy measures, including adding more and expanding on existing tax credits for the clean energy industry.
One of the energy credit adders in the law, also known as the Inflation Reduction Act, is the domestic content requirement. It allows energy companies to get a 10% increase in the credit amount if all of the steel and iron from a facility is produced in the US and 40% of the manufactured products is produced in the US. However, one hurdle is that the US supplies to meet the manufacturing threshold is limited.
On this episode of Talking Tax, our weekly podcast, Bloomberg Tax reporter Erin Slowey speaks with Amish Shah, a partner at Holland & Knight, about the value of the credits to companies and who's interested in the getting the domestic content adder.
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