The Inflation Reduction Act (IRA), which was signed into law in August 2022, will cut Americans’ energy costs, create good jobs and transform U.S. efforts to address the climate crisis. It is the largest single step that Congress has ever taken to address climate change.
The Inflation Reduction Act, similarly to the the EU Green Deal Industrial Plan and EU NZIA - Net-Zero Industry Act, builds on the initial climate funding opportunities passed into law in the Infrastructure Investment and Jobs Act (IIJA) to support projects mainly across power infrastructure and climate resilience.
DEC • actively supporting US IRA | Inflation Reduction Act
One of the key provisions of IRA is the increase in the deduction for qualified equipment: this deduction allows businesses to deduct the full cost of "qualifying equipment" in the year it is placed in service, rather than depreciating it over a period of years, potentially providing a significant tax savings for businesses that invest in a SRU VOC emission control technologies. Furthermore the investment tax credit (ITC), a tax credit that businesses can claim for investing in certain types of equipment, has been specifically increased.
Despite the challenges, DEC will position itself as a leader in the field of decarbonization technologies and help the US achieve its climate goals.