On August 16, 2022, President Biden signed the bipartisan Inflation Reduction Act (“IRA”) of 2022 into law. The bill includes sweeping legislation to create more incentives for green energy production, storage, and use through federal income tax credits and deductions. The IRA allows government and not for profit entities to cash in on certain credits, and it increases the payroll tax offset election for start-up companies.

Brooks Nelson and Sarah McGregor are joined by Ron Wainwright, Partner in our Tax Credits and Incentives practice, to dive deep into the tax implications that are included in the IRA. 

This podcast covered the various tax credits, new and enhanced, for commercial vehicles, monetizing credits, research and development (“R&D”) for start-up companies, and much more.

• Extending existing credits
• Introducing a few new credits
• Commercial vehicle credits 
• Enhancements and bonuses 
• Tax Exempt Entities can monetize credits
• R&D tax credit for start-up companies
• Raising and collecting tax revenues 

Related Guidance:

• Inflation Reduction Act Doubles R&D Tax Credit to Offset Payroll Taxes for Start-Up Businesses
• Inflation Reduction Act Nearly Triples Section 179D Tax Incentives
• How Can A&E Firms Take Advantage of New Tax Credits in the Inflation Reduction Act?