Incentives
IRA Energy Credits
Definition
The suite of energy tax incentives created or enhanced by the Inflation Reduction Act (IRA) of 2022 (P.L. 117-169), including expanded Investment Tax Credits, Production Tax Credits, new credits for battery storage, advanced manufacturing, clean vehicles, and bonus adders for domestic content, energy communities, and low-income projects.
Why It Matters for Your Business
The IRA is the largest clean energy investment in U.S. history — estimated at $369 billion over 10 years. For commercial building owners, it substantially increased incentive values (ITC raised to 30%), extended timelines through 2032+, and created new credits for previously ineligible technologies like standalone battery storage.
Frequently Asked Questions
When did IRA energy credits take effect?
Most provisions took effect January 1, 2023, for projects placed in service on or after that date. Some provisions (like standalone battery storage ITC) applied retroactively to January 1, 2023.
Where can I find official IRA credit information?
IRS.gov is the authoritative source. Key forms: IRS Form 3468 (ITC), Form 8835 (PTC). The IRS also publishes guidance at irs.gov/credits-and-deductions/businesses-and-self-employed/qualified-commercial-clean-vehicle-credit.