Clock is ticking for manufacturers to get maximum tax benefits on new projects under the Inflation Reduction Act

The Inflation Reduction Act of 2022 (IRA) includes the largest legislative energy incentive in U.S. history, promoting the transition to efficient use of renewable energy. It includes over 70 separate investment, production or excise tax credits, most of which are effective through 2032. However, manufacturers and other entities that are eligible for the tax incentives can preserve maximum benefits now if they can begin construction on qualified projects leading up to the end of 2022.

Manufacturers could get the tax benefit related to an in progress or planned project at an existing facility or if they produce renewable energy equipment components. Almost any entity with environmental, social and governance (ESG) initiatives will likely benefit from use of IRA tax incentives.