Since the Inflation Reduction Act passed on August 16, 2022, businesses of all sizes have asked, “What does this mean for me and my business?” From energy-related tax credits to tax provisions for startups, we’ll dissect the Inflation Reduction Act in simple terms and what it specifically means for your business. Clean Energy Tax Credits Electric Charging Stations Before January 1, 2022, businesses could install electric charging stations and receive a tax credit. The Inflation Reduction Act of 2022 extends the credit to charging stations installed and put in service before January 1, 2033. Commercial Clean Vehicles The Act also provides a tax credit – covering 30% of purchase costs – for businesses that utilize commercial clean vehicles, such as electric cars and fuel cell vehicles. This tax credit is available for those vehicles placed in service after December 31, 2022. Energy Efficiency Businesses can also take advantage of a tax credit to help them pay for energy efficiency improvements. The tax credit is worth up to $5 per square foot. Solar Power The Inflation Reduction Act offers businesses a tax credit that covers 30% of the cost it takes to switch to solar power. Manufacturing The Act offers tax incentives for manufacturers using U.S.-sourced materials to manufacture clean energy technologies, including solar, wind, clean hydrogen, and carbon capture. This will also help create U.S. jobs with fair wages and stimulate U.S. supply chains. Economies The Inflation Reduction Act establishes a Clean Energy and Sustainability Accelerator to finance state and local clean energy financiers, aiding the implementation of distributed zero-emission systems like heat pumps, community solar, and electric vehicle charging stations. This accelerator was also created with the intention of helping startup clean energy businesses, with a focus on supporting disadvantaged communities. Agriculture The Act expands the Rural Energy for America Program, …
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