IRA Tax Credit Solutions

Services | Tax | IRA Tax Credit Solutions

The Inflation Reduction Act offers individuals, businesses, and community organizations unprecedented opportunities to save money while making new investments into sustainable initiatives. The Act establishes new energy incentive programs that offer lucrative federal tax credits for a wide range of renewable energy property. With new features like refundability and transferability, IRA has made it even easier and more cost effective for organizations to invest in renewables and reduce its carbon footprint, while also saving money on energy bills.

The Inflation Reduction Act has implemented sweeping changes to the federal tax incentives programs available by expanding the eligibility to clean energy technologies beyond legacy renewables like wind and solar. Green energy tax credits are now also available to businesses and organizations investing in a broad range renewable energy property, energy efficient construction, carbon capture, as well as technology-neutral generation of renewable electricity. Under IRA, green energy tax incentives now include unique new features like refundability and transferability, offering organizations greater flexibility in accessing the benefits of the tax incentives whether or not they need to pay taxes.

Learn how your organization can leverage IRA and qualify for renewable energy tax credits to drive innovation and contribute to a sustainable future.

Key Benefits of the IRA Green Energy Tax Credits

Tax Credit Opportunities Across Industries

The green energy tax credits are designed to incentivize sustainability efforts across sectors, including renewable energy, transportation, manufacturing, agriculture, and much more. The Act promotes increased investments in green technologies ranging from solar and wind energy to electric vehicles as well as less-known carbon capture technologies. The tax credits have become an essential and versatile tool for organizations in different sectors looking to promote sustainable practices, fund investment in new projects, or reduce facilities operating costs.

Direct Pay Program Benefits

Eligible not for profit and governmental organizations who may not have benefited from tax credits in the past can now receive a refund of the tax credits through a “direct pay” program, allowing non-profits and governmental agencies to utilize the proceeds to fund additional investment in sustainable projects or redirect them toward operating cash flow.

Transferability Features

The new transferability feature allows qualified entities (for-profit corporations including S-corporations, partnerships, individuals and trusts) to “transfer” or sell unused green energy tax credits to other parties, providing an option to generate immediate financial return from credits they otherwise may not be able to utilize due to insufficient or deferred tax liability. The option to monetize tax credits can improve short-term cash flow, enhance project financing, and support the funding of additional investment in sustainability initiatives. Businesses investing in renewable energy projects can sell credits to other parties. In turn, companies can purchase tax credits to significantly reduce its tax liabilities.

Unlocking IRA benefits for diverse industries

The scope of IRA tax credits extends far beyond traditional energy projects. Organizations across every significant sector have opportunities to benefit from these incentives. From modernizing agricultural operations to revolutionizing real estate development, the IRA provides tailored solutions that align with your industry’s unique needs and goals.

Renewable Energy Industry

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Installation of solar panels on commercial or residential buildings, including solar energy systems for both large-scale projects and smaller residential applications.

Manufacturing Industry

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Investing in energy-efficient technologies such as LED lighting, smart HVAC systems, or high-efficiency machinery for manufacturing processes.

Agriculture Industry

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Sustainable farming practices and renewable energy use through installation of renewable energy systems such as solar panels or wind turbines to power farm operations.

Transportation Industry

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Purchase of electric vehicles for business fleets, adoption of clean fuel, including hydrogen or biofuels, in transportation fleets.

Real Estate Industry

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Investment in green building upgrades to meet energy efficiency standards or certifications like LEED (Leadership in Energy and Environmental Design).

Nonprofit & Public Sector

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Investing in new buildings, energy-efficient lighting, HVAC systems, as well as solar and other renewable energy systems.

How to get started

Ready to unlock the full potential of IRA tax credits for your business? BPM’s experienced tax professionals will guide you through each step of the process, ensuring you maximize available benefits while maintaining full compliance. BPM’s industry-specific tax professionals can help you:

Identify tax credit opportunities

Maximize program benefits

Prepare supporting documentation

Streamline credit utilization

Strategic alignment