The Inflation Reduction Act is landmark federal legislation that advances key priorities of the Clean Energy Districts of Iowa
Renewable Energy Tax Credits
Solar, wind, geothermal, biomass, fuel cell and battery storage tax credit of 30%!
Timeline and Details:
- 30% federal tax credit for solar, wind, geothermal and battery storage for projects installed
through 2032; these tax credits do not have a maximum dollar cap - Battery storage backup ≥3 kW (with or without associated solar production) is eligible for a
30% tax credit with no maximum dollar cap - To take advantage of credit, taxpayer must have tax liability, unused portions may be carried
forward and used in subsequent tax years - Entities without tax liability like schools, religious institutions, non profit organizations and
municipal governments are eligible for reimbursement of credit’s value through new direct
pay program
Find out more:
https://www.cleanenergydistricts.org/inflation-reduction-act
Electrical Vehicle Tax Credits
The $7,500/new and $4,000/used ELECTRIC VEHICLE and ELECTRIC CHARGER TAX CREDIT (fact sheet here) is certain to be transformational within the industry, but it will also comes with strings attached.
These include 1) that vehicles must be assembled in the US (effective immediately), 2) that batteries must be assembled in the US (near future), and 3) that the critical minerals within batteries must come from domestic or trade-friendly countries (% increases over time).
A limited number of vehicles were eligible through the end of 2022, but that number may fall in 2023 before rising again over time. If you’re in the market, study hard and consider acting now, if what you want is eligible and available.