IRA Clean Energy Tax Credits

Understanding the transformative potential of the Inflation Reduction Act's clean energy incentives

30%

Investment Tax Credit

Dollar-for-dollar reduction in federal tax liability

$0.85–0.92

Per Dollar of Credit

Market pricing for transferable credits via Section 6418

22

Credit Types

Covering solar, wind, storage, EVs, manufacturing, and more

Direct Tax Impact

The IRA introduces powerful new tax incentives that directly reduce tax liability for project owners and credit buyers alike

Dollar-for-Dollar Reduction

Unlike deductions that only reduce taxable income, tax credits reduce your actual tax bill. A $1M credit saves $1M in taxes.

  • Up to 30% ITC on qualified energy property
  • Immediate, measurable tax benefit
  • Bonus adders for domestic content and energy communities

Transferability

Section 6418 allows project owners to sell credits to unrelated buyers for cash, eliminating the need for traditional tax equity structures.

  • One-time, irrevocable transfers
  • Cash payment at closing
  • Simpler than tax equity partnerships

Broad Coverage

22 distinct incentives spanning the full clean energy value chain, from generation and storage to manufacturing and vehicles.

  • Solar, wind, storage, geothermal, and more
  • Both ITC and PTC structures available
  • Credits available through at least 2032

Complete Project Timeline

Understanding the full lifecycle of a tax credit project, from initial planning through IRS filing

1

Project Planning

Technology selection, site assessment, and credit eligibility analysis

  • Technology selection
  • Credit eligibility review
  • Bonus adder assessment
2

Construction

Physical development and meticulous tracking of qualifying expenditures

  • Qualified cost tracking
  • Prevailing wage compliance
  • Documentation collection
3

Placed in Service

Project completion, interconnection, and operational verification

  • Commercial operation date
  • Performance verification
  • Interconnection agreements
4

Credit Calculation

Determining final credit value with all applicable bonus adders

  • Qualified cost basis review
  • Bonus credit qualification
  • Independent engineer report
5

Credit Transfer

Marketing credits to qualified buyers and executing transfer agreements

  • Buyer matching
  • Transfer agreement execution
  • Representations & warranties
6

Tax Filing

Final documentation, IRS form preparation, and compliance submission

  • IRS Form 3800 prep
  • Transfer election filing
  • Compliance verification

Required Documentation

Essential documentation needed throughout the credit lifecycle to support your transfer

Project Documentation

  • Engineering designs and specs
  • Equipment manufacturer certifications
  • Construction timeline and milestones
View templates

Financial Records

  • Qualified cost basis documentation
  • Invoices, receipts, and contracts
  • Payment verification and bank records
Transferability guide

Compliance Records

  • Permits, licenses, and approvals
  • Prevailing wage and apprenticeship records
  • Domestic content and energy community certifications
Compliance details

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