Inflation Reduction Act 2022: Sec. 13501 Extension of the Advanced Energy Project Credit

The Inflation Reduction Act (IRA) of 2022, which seeks to reduce domestic inflation – notably brought by the global energy crisis – whilst tackling climate change, extends the Advanced Energy Project Credit for the production or recycling of wind turbine blades, the manufacturing of energy storage equipment and the refinement of renewable or low-carbon fuels. Under the extension, facilities which process, refine or recycle critical materials (as defined in section 7002(a) of the Energy Act 2020) are eligible to claim the benefit. The credit starts at a base of 6% and may amount to up to 30% of the qualified investment in property used in such a project that is certified by the US Department of Energy.

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