The Inflation Reduction Act’s broad tax incentives for certain investments in renewable energy sparked a flood of capital investment, hastening the development of clean energy infrastructure nationwide. According to an August 16, 2023 White House Press Release, private companies have announced over $110 billion in clean energy manufacturing investment since the enactment of the
The U.S. Environmental Protection Agency (“EPA”), which administers the federal renewable fuels program known as the Renewable Fuel Standards (“RFS”), has been grappling with the best approach to incorporating electric vehicles (“EVs”) into the RFS. Specifically, the EPA has been evaluating ways to adapt the RFS (under which renewable energy developers can generate marketable credits
On November 17, 2023, the U.S. Department of the Treasury issued a Notice of Proposed Rulemaking (the “NPRM”) with respect to Proposed Regulations under section 48 of the Internal Revenue Code of 1986 (the “Code”). The NPRM addresses the Investment Tax Credit (“ITC”) framework, as amended under the Inflation Reduction Act (the “IRA”). This blog
Among the benefits afforded the renewable energy sector by the Inflation Reduction Act of 2022, the ability to monetize 11 new or expanded clean energy tax credits via direct transfer was especially interesting to developers because of its potential to eliminate costly, drawn-out tax equity transactions.
Investors were also eager to participate in the newly
This blog post is the second part of a series on incentives available to Missouri solar developers in the wake of Johnson v. Springfield Solar 1, LLC, 648 S.W.3d 101 (Mo. 2022). For part one on Missouri Chapter 100 bond abatements and the Springfield Solar 1, LLC decision, click here.
Enhanced Enterprise Zones
As discussed previously in this blog, physical attacks against substations have been on the rise. However, the U.S. power grid[1] is also vulnerable to cyberattacks from U.S. adversaries, which includes hostile foreign governments, as well as individual bad actors such as insiders and criminals. Although there have been more physical attacks than cyberattacks
Last month, we reported how a key component of project finance—syndicated term loans—was the subject of a crucial case being heard in the U.S. Court of Appeals for the Second Circuit. In Kirschner v. JP Morgan Chase, the plaintiff contended that the term loans at issue were in fact securities that should be regulated
The global transition to clean energy is accelerating. Belatedly, attention is starting to move to mineral sourcing, particularly whether the necessary critical minerals will be available in the United States. A recent Aspen Institute report observed: “As the world transitions to a new energy mix, it will require clean energy technologies that are extremely mineral intensive. Demand for minerals is projected to rise at unprecedented rates and could generate supply shortfalls that will slow, or potentially even derail, global efforts to reach net-zero targets.”[1]
The Michigan Senate recently introduced legislation in an attempt to join several North American jurisdictions that have established clean fuel standards. The Michigan Clean Fuel Standard aims to reduce the average carbon intensity of transportation fuels sold and used in Michigan and incentivize investment in the production, distribution, and use of clean alternative fuels. Several
The Inflation Reduction Act (the “IRA”) provides funding for several tax credit incentives related to significant investments in energy projects. One of these credits is the section 48C investment tax credit (“48C Credit”), which was originally offered through the American Recovery and Reinvestment Act of 2009. The IRA includes a $10 billion allocation to the 48C Credit and also broadens the scope of eligible property a company can invest in to be eligible for the credit. If selected, the 48C Credit provides a credit equal to 30% of the project’s capital investment that is deemed to be “eligible energy property.”