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Industry
Inflation Reduction Act of 2022 – Energy Industry Implications
The Inflation Reduction Act of 2022 (IRA) and the One Big Beautiful Bill Act of 2025 (OBBBA) have significant tax implications for the energy industry. They provide unprecedented levels of tax credits for everything from renewable energy, storage, nuclear and carbon capture projects to renewables and storage equipment manufacturing, with complex restrictions and incentives intended to grow the domestic supply chain.
Troutman Pepper Locke helps clients understand the complexities of the IRA and the OBBBA, including anticipating emerging issues and taking advantage of opportunities throughout the industry.
Legislative and regulatory highlights related to the IRA and the OBBBA include:
- PTC and ITC Extensions and Early Termination
- Clean Electricity Production Credit and Clean Electricity Investment Credit
- Foreign Entity of Concern Restrictions
- “Beginning of Construction” Standards
- Standalone Storage and Interconnection Property
- Carbon Capture and Sequestration Credit
- Prevailing Wage and Apprenticeship Requirements
- Domestic Content Enhancement
- Energy Community Enhancement
- Nuclear Power Production Credit
- Low-Income Community Enhancement
- Credit Transfer and Direct-Pay Elections
- Clean Hydrogen Credits
- Advanced Manufacturing Production Credit
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