California Increases Offshore Wind Development Goals
More on offshore wind, this time in California:
California Increases Offshore Wind Development Goals | Perspectives & Events | Mayer Brown
The Green Energy Tax Incentives of the Inflation Reduction Act of 2022
Here is Mayer Brown’s Legal Update regarding some of the noteworthy proposals in the Inflation Reduction Act of 2022 that related to green energy.
Manchin’s BBB Redux-tion Act – The Inflation Reduction Act of 2022
Last night, after weeks of negotiations, Senators Manchin and Schumer reached a deal on an energy and healthcare bill titled the Inflation Reduction Act of 2022 (the “Act”). The Act includes extensive provisions relating to a range of green energy tax incentives. While these provisions largely track the corresponding provisions in the previously released Build Back Better Act, a preliminary review of the Act suggests that there are a number of material differences.
A more detailed analysis of the Act will follow, but key provisions include:
- Extension of the solar investment tax credit (“ITC”) and renewable electricity production tax credit (“PTC”) for projects that begin construction before January 1, 2025.
- Reduced ITC and PTC for projects that fail to satisfy prevailing wage and apprenticeship requirements; but deemed satisfaction of such requirements for projects that begin construction prior to the date that is 60 days before Treasury issues guidance related to these provisions.
- Bonus ITC and PTC for projects that satisfy certain domestic content requirements.
- ITC expanded to standalone storage and certain interconnection property.
- Direct pay option for certain tax-exempt entities.
- Option for taxable entities to transfer the ITC and PTC to unrelated parties.
- 3-year carryback period for the PTC (but only for projects that are placed in service after December 31, 2022) and the ITC.
- A 15% minimum tax on corporate taxpayers with adjusted financial statement income in excess of $1 billion; however, the ITC and PTC may be applied to reduce the minimum tax but not below 25% of the taxpayer’s net income tax in excess of $25,000.
Carbon Capture, Utilization, and Storage: Class VI Wells and US State Primacy
A number of my Mayer Brown colleagues drafted this Legal Update that provides an overview of the Class VI permit application, the status of current and pending Class VI applications, and the status of state primacy for UIC programs.
UPDATED: IRS Releases 2022 Section 45 Production Tax Credit Amounts
On April 14, 2022, the US Internal Revenue Service (IRS) published a notice that provides the inflation-adjustment factor and reference price for the calculation of renewable electricity production tax credits (PTCs) under Internal Revenue Code (IRC) section 45 for calendar year 2022, as well as the amount of the PTC for 2022 as adjusted for inflation.
On May 5, 2022, the IRS issued corrections to this notice, revising the inflation-adjustment factor from the initially released 1.8012 to 1.7593 and reducing the PTC amounts accordingly.
Continue Reading UPDATED: IRS Releases 2022 Section 45 Production Tax Credit Amounts
Buy Clean: Biden’s Executive Order on Catalyzing Clean Energy through Federal Procurement
With the federal government being the largest energy consumer in the United States, late last year President Biden issued the Executive Order on Catalyzing Clean Energy Industries and Jobs Through Federal Sustainability to set aggressive decarbonization goals for federal agencies. This Legal Update summarizes the executive order, the three primary contracting mechanisms that federal agencies have historically used to purchase competitively priced renewable energy and the regulatory nuances they entail.
US DOT Allocates $615 Million for EV Charging Station Networks
Read about new guidance from the US Department of Transportation on the allocation of $615 million in funds for electric vehicle infrastructure under the National Electric Vehicle Infrastructure Formula Program in this Legal Update authored by Chadron Edwards, Morenikeji Akinade, George Haines, Samantha Leavitt, Nick Vallorano and Alec Weingart.
US BOEM Announces Provisional Winners of Massive Offshore Wind Auction
The Bureau of Ocean Energy Management (BOEM) held a 3-day competitive auction for six lease areas in the New York Bight area off the coast of New York and New Jersey. Read about it in this Mayer Brown Legal Update authored by my colleagues Lauren A. Bachtel, Eric R. Pogue and J. Paul Forrester.
NY Announces $500 Million Offshore Wind Investment and 2022 Procurement
Read about it in this Mayer Brown In Brief.