As companies move forward with clean energy investments and decarbonization projects, many face questions about which of these projects qualify for tax incentives under the Inflation Reduction Act (IRA), and how best to utilize the act’s credits and other green initiatives. 

In today’s episode, Heather Horn welcomes back Matt Haskins, PwC principal, to discuss the latest IRS guidance for IRA initiatives, marketplace transactions, and further considerations for companies looking to take advantage of the IRA. 

In this episode, you’ll hear discussion of:

• 5:06 - Advanced energy project credits under IRS Section 48C, and the status of the current allocation of the $10 billion budgeted pool
• 9:09 - Transferability and timing considerations of tax credits 
• 12:07 - Choosing between investment tax credits and production tax credits
• 14:55 - Risk of recapture of paid tax credits and relevant mitigating strategies
• 23:53 - How a government shutdown would impact IRA initiatives
• 27:59 - Market developments in the hydrogen production tax credit
• 33:07 - The interplay between the IRA and European Union regulations, including the impact of the Carbon Border Adjustment Mechanism (CBAM)
• 36:05 - The importance of evaluating decarbonization costs on an after-tax basis

Looking for more information on the European Union’s Carbon Border Adjustment Mechanism? Check out our previous podcast on how the CBAM may impact your company.

Looking for more information on transferability of IRA credits? Check out our latest publication on accounting for IRA credits and our podcast on renewable energy credits for more information.

Matt Haskins is a principal in PwC’s Washington National Tax Services, where he leads the firm's Cleantech tax practice, focusing on renewable energy financing and M&A transactions. In addition to writing and speaking on issues in the renewable energy industry, Matt has co-chaired the energy and environmental taxes working group for the US Council on International Business and served as a delegate for key energy initiatives of the Organization for Economic Cooperation and Development.

Heather Horn is PwC’s National Office thought leader, responsible for developing our communications strategy and conveying firm positions on accounting and financial reporting matters. She is the engaging host of PwC’s accounting and reporting weekly podcast and quarterly webcast series. With over 30 years of experience, Heather’s accounting and auditing expertise includes financial instruments and rate-regulated accounting.

Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to [email protected].

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