On August 16, 2022, President Joseph Biden signed into law the Inflation Reduction Act of 2022 in what many have called the largest investment in climate change countermeasures in U.S. history.

The Inflation Reduction Act of 2022 is probably the most consequential climate change legislation ever enacted by the U.S. government—it certainly will be the most expensive—and accordingly, it will have a major impact on the renewable energy industry, mostly in the form of incentives and credits. Our team has reviewed the IRA’s 700-plus pages and brought together in this convenient guide all of the provisions relevant to the renewable energy industry.

IRA Renewable Energy Provisions

I. Clean Electricity and Reducing Carbon Emissions

Production Tax Credit (PTC) Extension/Modification (§13101)

• Extends the beginning of construction deadline for wind, biomass, geothermal, solar (which previously expired at the end of 2005), landfill gas, trash, qualified hydropower and marine and hydrokinetic technologies from before January 1, 2022 to before January 1, 2025. Projects that were placed in service prior to January 1, 2022 remain subject to the existing PTC phaseout.

• Base credit for most technologies is set at 0.3 cents per kWh. Facilities that pay prevailing wages during the construction phase and the first 10 years of operation and meet apprenticeship requirements (the “Wage and Workforce Requirements”) are eligible for a PTC that is five times the base credit. There is an...

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