On July 27, 2022, Senate Majority Leader Chuck Schumer (D-NY) and Senator Joe Manchin (D-WV) announced an agreement for an energy, climate, tax and health care plan known as the Inflation Reduction Act of 2022 (IRA). The IRA includes $369 billion in energy and climate change investments that represent the bulk of the climate provisions from prior iterations of the Build Back Better agenda (BBB), with certain adjustments. The agreement between Schumer and Manchin caught many by surprise and represents a significant breakthrough in negotiations that were recently thought to have reached an impasse.
The tax framework of the energy tax provisions is structured as a hybrid approach to the previous House of Representatives proposal, and the approach advocated by the Senate. The IRA would initially extend existing tax credits (and create certain new credits) before transitioning to a technology-neutral approach that is intended to allow power producers to qualify for either a production tax credit or an investment tax credit for any facility with zero or net-negative carbon emissions. (For a detailed comparison of the previous legislative proposals, please see Pillsbury’s prior analysis here.)
The IRA provides a broad-based network of incentives to help fund the energy transition, including incentives for clean electricity, clean transportation and advanced manufacturing. Like...
On Friday, April 10, 2026, the U.S. Department of Justice (DOJ) announced that International Business Machines Corporation (IBM) has agreed to pay just over $17 million to resolve allegations that ...