IRA FAQ: Sneak Peak
On August 16, 2022, the Inflation Reduction Act (IRA) was signed into law by President Biden after passing both chambers of Congress. SEIA’s public and members-only summaries of the legislation are available on the SEIA website, and will be updated periodically.
SEIA is compiling answers to frequently asked questions from clean energy companies and stakeholders. The questions are summarized below, and SEIA members can access the answers here. These FAQs will be updated periodically with both new questions and updated information. If you don't see your question here, contact us at [email protected].
1. ITC and PTC
If I started a solar project in 2021 and place it in service in 2022 before guidance from Treasury, does it receive a 26% credit or 30%?
When does standalone storage start qualifying for the ITC?
Can storage take the PTC?
For the standalone storage ITC, must the storage property be charged by some percentage of renewable energy?
Now that the IRA has been enacted, must storage property in a solar+storage installation be charged by some percentage of renewable energy?
If I have a solar+storage project or wind+storage project, can I get the PTC for the solar/wind component and the ITC for the storage component?
For solar + storage projects, what happens if storage meets the domestic content adder rules but not the rest of the system or vice versa? Could the adder be applied to just the storage piece?
For the production-based tax credits, is there a total funding limit?
2. Adder Credits
Can “adder” credits in the legislation be “stacked?”
When do the adder credits start?
Are there waivers for adder credits? For example, if you only partially meet domestic content standards, can you receive all or partial domestic content credit?
Can I get domestic content adder for residential projects that use the Section 25D credit?
What is required to obtain the domestic content adder credits to the ITC or PTC – use of both 100% steel/iron AND 40% US-manufactured products, or only or the other?
How will the 40% requirement for manufactured goods be measured?
3. Other Provisions
Who can receive direct pay?
For purposes of the Greenhouse Gas Reduction Fund what counts as a “zero emission technology?” Is this directed at electric generation, transportation, or what?