Optimizing Benefits of
Tax Credits and
Incentives in the Inflation
Reduction Act

The Inflation Reduction Act of 2022 (IRA) is the largest climate investment legislation in history, allocating $369 billion to clean energy programs over the next 10 years—including many new clean energy credits and incentives for businesses.

Whether you are looking to use credits to lower your total tax liability and contribute to sustainability initiatives, or you are seeking funding for renewable energy projects, BDO’s tax and ESG professionals have the experience and knowledge to guide you through the process.

Our clients benefit from our help in maximizing the economics of their renewable energy investments through tax incentives. Many opportunities exist, including:

• Manufacturing 48C Investment Tax Credit: Are you investing in projects that produce or recycle a range of clean energy equipment and vehicles, critical minerals, or significantly reduce greenhouse gas emissions at facilities? BDO can help with project feasibility, IRC Section 48C concept papers and full credit applications.
• Manufacturing 45X Production Tax Credit: Are you engaging in domestic production of solar, wind, inverter, battery, and critical mineral components? BDO can help with project feasibility, advanced project management, and credit monetization to build an organizational strategy around the IRC Section 45X tax credit program.
• Energy Investment and Production Tax Credits: Are you investing in renewable energy generation technologies such as solar, energy storage, biogas, geothermal and wind? BDO can help with project feasibility, advanced project management, and credit monetization to ensure proper thresholds have been met under the IRA’s new tiered credit rate structure.
• Credit Monetization: Whether you’re seeking a direct payment from the IRS or transferring the credit to a third party, BDO can advise on the credit transfer process. For credit buyers, the IRA’s credit transfer provisions create an opportunity to purchase renewable tax credits at a discount, resulting in valuable tax savings. For credit sellers, credit transfer can help fund new investments.