Renewable Energy Production Tax Credits

An aerial view of a tall bright boiler tower surrounded by mirrors in the Mojave Desert.

In an aerial view, a boiler tower is surrounded by mirrors at the Ivanpah Solar Electric Generating System in the Mojave Desert on August 26, 2022 near Nipton, California.

Source: David McNew/Getty Images

The IRA provides tax credits to support both the production of and spur certain investments in wind, biomass, geothermal, solar, and other renewable energy sources.

Carbon Capture Tax Credits

An illustration of a series of fans in a building that would suck in air and capture carbon dioxide from it.

An artist's rendering of Carbon Engineering's planned direct-air capture plant in Texas, scheduled to begin operating in 2024.

Source: Courtesy of Carbon Engineering Ltd.

The IRA enhanced the tax credits for industrial carbon capture as well as direct air capture. Industrial carbon capture is when carbon emissions are captured at industrial facilities before they're released into the atmosphere, while direct air capture involves the removal of carbon dioxide that's already in the atmosphere.

Energy Infrastructure Reinvestment

A crane extends into an offshore wind turbine under construction in the middle of the ocean.

An offshore wind farm is being built off of Block Island, Rhode Island on August 15, 2016.

Source: Mark Harrington/Newsday RM via Getty Images

The IRA gives the Department of Energy the authority to guarantee $250 billion worth of loans to finance energy infrastructure projects that help reduce greenhouse gas emissions.

Transmission Project Financing

A field of power lines and windmills extend across an arid landscape.

A view of windmills and power lines near Tracy, California, August 17, 2022.

REUTERS/Carlos Barria

The IRA created a new direct loan program for certain types of transmission projects that would strengthen U.S. energy security and better support the use of wind and solar energy. It also offers grant money to help state and local governments develop and coordinate interstate transmission projects.

Alternative Fuel Tax Credits

An engineer fills a container of clear liquid in a high-tech laboratory.

A scientist works on The National Renewable Energy Laboratory's formula for Sustainable Aviation Fuel made from wet waste.

Source: Dennis Schroeder, NREL

The IRA creates a new tax credit for more sustainable mixtures of aviation fuel that would lower the greenhouse gas emissions from airplanes.

Clean Hydrogen Tax Credit

A blue hydrogen fuel cell filling station stands in contrast to the Chevron gas station behind it.

Pump with logos is visible at True Zero hydrogen fuel cell filling station in Marin County, Mill Valley, California, August 16, 2020.

Source: Smith Collection/Gado/Getty Images

The IRA creates a new tax credit for the production of clean hydrogen, which could be used as a transportation fuel and to also reduce emissions in energy intensive industries like steel and cement manufacturing, among others.

Consumer Tax Credits for Electric Vehicles

People inspect a Tesla Model Y electric vehicle in a showroom.

People look at a Tesla Model Y electric vehicle on a showroom floor at the Miami Design District on October 21, 2021 in Miami, Florida.

Source: Joe Raedle/Getty Images

The IRA expanded tax credits for consumers (earning up to a certain amount of income) for buying new electric vehicles, and it created a new tax credit for buying used electric vehicles as well.

Methane Emissions Tax

Members of the United Nations Security Council sit during a meeting on Syria at the United Nations Headquarters in New York City on April 5, 2017. Source: Shannon Stapleton/Reuters.

The Philadelphia Energy Solutions oil refinery owned by The Carlyle Group is seen at sunset in front of the Philadelphia skyline March 24, 2014.

Source: REUTERS/David M. Parrott

The IRA established a methane emissions fee that applies to specific types of petroleum and natural gas facilities that produce the greenhouse gas.

Energy Efficient Buildings Tax Credits

A man leans down off a roof to grab a solar panel being handed to him.

Workers lift a solar panel onto a roof during a residential solar installation in Scripps Ranch, San Diego, California, U.S. October 14, 2016.

Source: REUTERS/Mike Blake

The IRA expanded and increased the tax credits for households that make energy efficiency improvements and acquire clean electricity installations (like solar panels and battery storage). It also provides funding for states to develop their own residential energy efficiency rebate programs.

Postal Service Clean Fleets

A futuristic looking electric postage truck pulls up to a mailbox.

An artist's rendering of the new cleaner delivery trucks to be built for the United States Postal Service.

Source: Oshkosh Defense

The IRA provides $3 billion in funding for the U.S. Postal Service to buy zero-emission delivery vehicles and develop the infrastructure needed to support its clean fleet.

Domestic Renewable Component Tax Credits

A man inspects a large solar panel within a factory.

A production operator checks a panel at the SolarWorld solar panel factory in Hillsboro, Oregon, U.S., January 15, 2018.

Source: REUTERS/Natalie Behring

The IRA creates a new tax credit for producing certain components needed to make solar and wind energy systems within the United States.

Electric Vehicle Manufacturing Support

A line of nearly assembled white electric trucks passes through a factory.

Hummer EVs are seen on the production line at the General Motors 'Factory ZERO' electric vehicle assembly plant, in Detroit, Michigan on November 17, 2021.

Source: REUTERS/Jonathan Ernst

The IRA provides funding to the Department of Energy to offer loans for building low GHG emission vehicle manufacturing facilities in the United States. It also funds grants for recently closed or at-risk car manufacturers to convert their facilities so that they can produce cleaner vehicles.

Green Bank

Five windmills stand on a hill above shrubland in Campo, California.

A view of the Kumeyaay Wind farm on the Campo Indian Reservation in Campo, California, on May 29, 2020.

Source: REUTERS/Bing Guan

The IRA provides $27 billion to the EPA for a new GHG Reduction Fund to help finance greenhouse gas-reducing activities. Of those funds, $15 billion are set aside specifically for projects helping low-income and disadvantaged communities.

National Laboratory Research

Scientists in white coats operate a device inside of a globular chamber.

Nuclear fusion researchers work within the US National Ignition Facility's target chamber.

Source: Lawrence Livermore National Laboratory

The IRA provides funding to the Department of Energy for national laboratory projects that support nuclear physics, fusion energy, and other advanced scientific research.