In August 2022, President Biden signed the Inflation Reduction Act (IRA) into law. Based on the Build Back Better framework, the IRA contains several tax provisions, including clean energy tax credits and deductions.
Including approximately 20 new or altered credits, the IRA provides an opportunity for businesses, tax-exempt entities, and individuals to benefit from their clean energy initiatives. Generally available to those of all industries and sizes, these credits can be classified in a few key categories (note the below list is not all-encompassing):
- Capital Expenditures—clean energy property or construction and renovation projects
- Manufacturing—manufacturing of clean energy property or re-equipping and expanding manufacturing facilities of clean energy property
- Carbon Sequestration—capture and either disposal or utilization of carbon
- Alternative Fuels—clean nuclear, biodiesel, clean hydrogen, or aviation fuels
- Electric Vehicles—electric vehicles, mobile machinery, and charging stations
- Energy Production—energy produced from a variety of methods
While there are many opportunities within the IRA, the rules for the included credits can be complex. Whether deciding if a current or planned project would be eligible for a credit, considering whether there is a business case for the investment, or understanding the documentation requirements for compliance, there is a lot to review when it comes to clean energy. However, most taxpayers often have the same first questions—what qualifies and how much benefit may result from clean energy investments?
That’s why Forvis Mazars created TaxCred PROTM for Clean Energy, a complimentary tool that simplifies the IRA discovery process, saving valuable time in researching clean energy tax credits and deductions for businesses and individuals.
Using TaxCred PRO to discover IRA clean energy tax benefits begins with a guided questionnaire, collecting details about a user’s clean energy initiatives. Once the questionnaire is completed, TaxCred PRO generates a customized educational report outlining many of the clean energy tax credits and deductions that may be relevant to the business or individual’s clean energy investments or projects, with potential tax benefit amounts given the information provided through the questionnaire.
The TaxCred PRO questionnaire also includes an option to request a meeting with Forvis Mazars consultants to discuss questions overall, as well as more specific needs related to IRA tax credits and deductions. Forvis Mazars has built a team of tax consultants prepared to help you with your clean energy projects, whether it’s considering eligibility, modeling the benefit of your investment, or helping in compliance for the credits.
Visit forvis.com/clean-energy to learn more and access the complementary TaxCred PRO for Clean Energy tool today or reach out to a Forvis Mazars professional.