Clean Energy Tax Credits: Implementation of the Inflation Reduction Act

This report examines the clean energy tax provisions enacted in the Inflation Reduction Act (IRA) of 2022, which represent the largest federal investment in climate and clean energy in U.S. history. It describes production tax credits, investment tax credits, and consumer credits for electric vehicles, residential clean energy, and energy efficiency improvements.

The report discusses the Treasury Department's implementation of IRA tax provisions, including guidance on domestic content requirements, prevailing wage and apprenticeship standards, and the transferability and direct pay mechanisms. It analyzes uptake data for various credits and their impact on clean energy deployment.

Policy considerations include the projected cost of IRA tax provisions, their effectiveness in reducing greenhouse gas emissions, the impact on domestic manufacturing and supply chains, and proposals to modify, extend, or repeal specific provisions.