There is much to be excited about in the recently passed Inflation Reduction Act (IRA). There are additional tax credits such as the production tax credit (PTC) and the investment tax credit (ITC) to encourage implementation of zero emissions technology. Another innovative way the tax credits can be applied is that the “IRA makes tax credits “transferrable,” allowing developers to sell credits directly to anyone with tax liability, circumventing waste and making each federal dollar go much further. In order to realize the full PTC tax credit of 30% laborers and mechanics in solar projects must be paid prevailing wages and to be part of an electrical apprenticeship program. There is a residential tax credit of 30% that applies to installation of solar panels, or wind, geothermal and biomass fuel.

Source: Forbes September 22, 2022 00:08 UTC