The Treasury released proposed rules Wednesday outlining which technologies would qualify for new zero-emission energy tax credits under the Inflation Reduction Act. Wind, solar, and geothermal are among those that would make the cut.
Hydropower, nuclear fusion, and fission projects would also qualify for the clean electricity production and investment tax credits under the proposed rules for Internal Revenue Code Sections 45Y and 48E. These new tax credits, created by the 2022 Inflation Reduction Act, would generally apply to projects breaking ground beginning next year. Meanwhile, the existing Section 45 and 48 green energy production and investment credits would phase out.
Inflation Reduction Act energy credits
The rules for the new clean energy credits generally follow those for the existing credits, which should encourage developers, the U.S. Department of the Treasury said in a statement.
The tax credits “provide certainty to the market and are poised to drive substantial further growth and lower utility bills over the long-run,” Treasury Secretary Janet Yellen said in the statement.
