Over 45,500 Clean Energy Projects Register for New Tax Credits
45,500 Clean Energy Projects Ride with New Tax Credits. (PHOTO: ICMA)
Inflation Reduction Act Fuels Accelerated Development
According to FingerLakes1.com, in a significant stride toward bolstering clean energy initiatives, the U.S. Department of the Treasury and the Internal Revenue Service (IRS) have achieved a milestone in the sector. The announcement, made on March 8, 2024 revealed that over 45,500 clean energy projects have registered for new tax credit options via the IRS Energy Credits Online (ECO) portal. This surge in registrations marks a pivotal moment in the implementation of the Inflation Reduction Act aimed at expediting the construction of clean energy projects nationwide.
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Revolutionizing Clean Energy Financing
The Inflation Reduction Act introduced groundbreaking credit delivery mechanisms including elective pay (direct pay) and transferability to broaden the scope of clean energy tax credits. These mechanisms enable a wider range of entities such as state, local, and Tribal governments, non-profit organizations and U.S. territories to access financial incentives for clean energy projects. U.S. Deputy Secretary of the Treasury, Wally Adeyemo, emphasized the significance of these changes in facilitating easier access to tax incentives ultimately driving rapid and cost-effective development of clean power projects while supporting the nation’s climate goals and clean energy economy growth. To facilitate secure and efficient access to these benefits, the IRS developed the ECO portal enabling entities to register their projects and obtain a registration number for claiming credits on their annual tax returns. With approximately 500 entities registering over 45,500 projects, the vast majority are seeking transferability of the credits. These efforts reflect a dual commitment to achieving economic and climate objectives with the IRS leveraging new technologies to support the expansion of clean energy tax credits and pave the way for a brighter future for clean energy projects in the United States.
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