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How Partnerships Can Cash in on Energy Credit Transfers

18 August 2023

In light of recent IRS proposed regulations, Jessica Millett and associates at Hogan Lovells explain how partnerships can best monetize renewable energy tax credits under transferability provisions of the Inflation Reduction Act of 2022.

Many have described the Inflation Reduction Act of 2022 (the “IRA”) as a game-changer for the renewable energy industry and its efforts to reduce carbon emissions and combat climate change. It is true that the IRA introduced a new sweeping set of tax credits and other incentives, or in some cases updates and revisions to existing incentives, that can make renewable energy the most cost-effective choice for businesses and property owners. However, those tax incentives need to be packaged the right way so that developers and other stakeholders in the renewable energy industry can effectively monetize the benefits.