Technology-neutral tax credits designed to unleash investment to decarbonize the U.S. economy will help emerging technologies under development, McGuireWoods’ Marc Nickel told E&E News in a Jan. 31, 2024, story.
Enacted in the Inflation Reduction Act, the tax credits will be available for clean energy projects that start construction in 2025, regardless of the technology. Emerging technologies stand to benefit, according to Nickel, a San Francisco associate.
“Now instead of trying to substantiate that you’ve got the right kind of technology deployed, the credit is going to be agnostic about the credit, and it’s going to be interested in how much carbon is emitted,” he said. “There will be an opportunity for new technologies to come on board that do different things.”
Nickel added that little would change for developers of most projects under the new credit system. “I don’t think it will be very disruptive to things that are currently working,” he said. “Solar and wind are still going to qualify.”