The U.S. Department of the Treasury and the Internal Revenue Service (IRS) have finalized rules to solidify certain tax credits under President Joe Biden's Inflation Reduction Act (IRA) into the U.S. tax code, ahead of the anticipated transition to a new administration in 2025.
The tax credits, designed to support the growth of clean energy technologies, aim to foster innovation in zero-emissions sectors while offering sustained incentives for businesses investing in clean energy solutions, the Treasury Department explained.
In a statement, U.S. Secretary of the Treasury Janet L. Yellen emphasized the long-term impact of these provisions: “The final rules issued today will help ensure America's clean energy investment boom continues – driving down utility costs for American families and small businesses, creating good-paying construction jobs, and strengthening energy security by making the U.S. more resistant to price shocks.
The existing Production and Investment Tax credits will remain available for projects that begin construction before 2025. However, projects that begin after December 31, 2024, will be eligible for a new Clean Electricity Credit.
U.S. Secretary of Energy Jennifer M. Granholm also praised the move, stating: “Today's final guidance helps provide clean energy producers the clarity needed to deploy more clean energy solutions at scale to drive down costs for more American families and deliver future-facing careers for America's workforce.
The new regulations are set to take effect on January 15, just days before the expected change in presidential administration.
