The Inflation Reduction Act (IRA) offers significant incentives for the development of wind, solar, battery storage, and electric vehicle (EV) technology. A key component of these energy incentives is encouraging the use of domestically manufactured components in these renewable energy projects. To support this goal, the IRA includes tax credits for the domestic manufacturing and recycling of key components for these technologies.
These provisions include the advanced manufacturing production credit (AMPC), which creates a new tax category (45X) to provide incentives to use eligible components in solar, wind, and battery projects. Examples of these components include blades, inverters, battery cells, photovoltaic wafers, and solar modules. The provision also includes applicable critical minerals, as highlighted in our recent mining-focused blog article.
The IRA also extends the advanced energy investment tax credit (48C), offering a tax credit for qualifying advanced energy projects. This includes:
Facilities that manufacture certain renewable energy components, including those that recycle qualifying property
Qualifying property and components designed to produce energy from water, the sun, wind, geothermal deposits, and other renewable resources
Certain equipment, components, property, products, technology, and materials
Advanced energy property designed to reduce greenhouse gas emissions
Barr is supporting the development of domestic manufacturing and recycling projects that take advantage of these credits and help meet the demand for these components. This includes air permitting compliance for a renewable energy component manufacturing company in multiple states. Barr has a long history of serving the lead battery recycling market and is currently serving clients expanding into critical mineral recycling. Contact us to learn how your organization can capitalize on these new IRA incentives.
About the authors
Abby Morrisette, vice president, senior environmental engineer, has more than a decade of experience in industrial water treatment, multimedia environmental compliance assistance, on-site compliance management, mass and energy balances, biological processing, impaired-waters management, and agricultural systems. Abby helps clients understand how environmental compliance translates into practical implementation.
Phillip Fish, senior chemical engineer, has more than a decade of environmental consulting experience focusing on air quality permitting and compliance. His work experience includes federal and state air quality permitting, regulatory applicability analyses, emission calculation development, environmental reporting, dispersion modeling, and regulatory-agency negotiations assistance. He has several years of on-site experience at client facilities assisting with an array of permitting, reporting, and compliance-related tasks.