Death, Taxes, and Clean Energy: How the Inflation Reduction Act Harnesses Tax Law to Revitalize American Clean Energy

Authors

James A. Ferguson

Document Type

Comment

Abstract

This article explores the nature and impact of the IRA’s historic tax reform on U.S. clean energy markets, emphasizing its significance for businesses, American workers, the global community, and the climate. It begins with an overview of federal tax credits for clean energy, comparing German and American approaches to incentivizing clean energy investments. The article then details five key provisions of the IRA, including extensions of the ITC and PTC, creation of new credits, transferability of tax credits, prevailing wage and apprenticeship requirements, and additional tax credits for domestic content and siting. It further analyzes the IRA’s practical implications for investors, project developers, American workers, and everyday Americans, highlighting its potential to open the clean energy market to more projects and investors, enhance equity, improve market efficiency, and support American workers. Finally, the article considers the IRA’s global significance in terms of U.S. competitiveness and greenhouse gas reduction goals, concluding with reflections on the lasting legacy of the tax reform.

First Page

91

Last Page

123

Recommended Citation

James A. Ferguson, Death, Taxes, and Clean Energy: How the Inflation Reduction Act Harnesses Tax Law to Revitalize American Clean Energy, 17 J. Bus. Entrepreneurship & L. 91 (2024)
Available at: https://digitalcommons.pepperdine.edu/jbel/vol17/iss1/3