Inflation Reduction Act of 2022

02/11/2025 - US Administration Signals Potential Changes to Inflation Reduction Act Drug Price Negotiations

In what appears to be a response to manufacturer complaints regarding “black box” Inflation Reduction Act (IRA) drug price negotiations, the US administration issued a statement on January 29, 2025, stating it planned to consider “opportunities to bring greater transparency” to the negotiation process. Manufacturers assert that greater transparency requires the Centers for Medicare and Medicaid Services (CMS) to adopt a more formulaic approach to price negotiations, where each statutory negotiation factor is assigned a weighted value that CMS must use when negotiating prices.

07/24/2024 - 5 Tips For Solar Cos. Navigating Big Shifts In US Trade Policy, Law360

Partner Carl Valenstein and associates Casey Weaver and Katelyn Hilferty co-authored a Law360 Expert Analysis article discussing recent US tariffs on the solar industry and their impacts on solar energy companies.

06/25/2024 - Energy Incentives for Climate-Friendly Hydrogen Fuel Cells Help Transform Transportation, Reuters

Partner Pam Wu authored an article for Reuters discussing the growing integration of hydrogen and fuel cell technologies in various industries, as part of their decarbonization efforts.

05/22/2024 - Elective Safe Harbor Released for IRA Domestic Content Tax Credit ‘Adder’

The US Department of Treasury and the IRS on May 16 released Notice 2024-41, which provides a new elective safe harbor that taxpayers may use to qualify for the domestic content bonus credit amount under Sections 45, 45Y, 48, and 48E of the Internal Revenue Code. Released over one year following earlier guidance, the Notice is likely to provide more certainty for taxpayers seeking to qualify for the domestic content bonus credit amount with respect to certain solar and onshore wind projects. The Notice, however, is unlikely to provide similar results for standalone battery electric storage systems projects or other nonsolar or wind projects.

04/12/2024 - Why Reliable Hydrogen Supply Plays a Critical Role in the Adoption of Fuel Cell Technologies

As the hydrogen industry continues to develop and evolve, many industries, including the manufacturing, transportation, construction, industrial, and retail industries have transitioned parts of their operations to incorporate hydrogen and fuel cell technologies.

February 2024 - The Trends—and Traps—That Will Shape 2024

In the run-up of what will be a pivotal election year in the United States and in other global jurisdictions, Morgan Lewis lawyers provide a high-level overview of some major trends and regulatory and legislative developments that are on the horizon.

01/30/2024 - Decarbonization Trends and Regs Are Shifting Corporate Priorities, Bloomberg Law

In a Bloomberg Law Insight, partners Casey August, Jane Accomando, and Levi McAllister examined developments on carbon emission reduction and reporting that will likely shape how US companies approach sustainability goals in 2024 and beyond.

January 2024 - Innovation, Regulation, and Litigation: The Automotive Industry's Road to 2024

Morgan Lewis’s 2023 Automotive Hour webinar series explored the impact of these and other developments on manufacturers, suppliers, and lenders and shared how the industry can adapt to these trends to take advantage of what lies ahead.

01/05/2024 - Treasury and IRS Publish Much-Anticipated Guidance on Clean Hydrogen Tax Credit

The Internal Revenue Service (IRS) and the US Department of the Treasury (Treasury) recently published proposed regulations (Proposed Regulations) setting forth rules applicable to the credit for the production of clean hydrogen and the election to treat clean hydrogen production facilities as energy property under Sections 45V and 48(a)(15) of the Internal Revenue Code (Code) enacted under the Inflation Reduction Act of 2022 (IRA).

12/18/2023 - IRA’s Advanced Manufacturing Production Credit: IRS Publishes Proposed 45X Regulations

The Internal Revenue Service’s proposed Section 45X regulations, released on December 15, provide US-based manufacturers with much-anticipated guidance for a credit that has been available since the beginning of 2023.

11/28/2023 - Treasury and IRS Publish Long-Awaited Guidance on Renewable Energy Investment Tax Credit

The US Internal Revenue Service (IRS) and US Department of the Treasury (Treasury) released proposed regulations on November 17, 2023 addressing the investment tax credit (ITC) for renewable energy and energy storage facilities, expanding upon and clarifying prior guidance on applying the ITC following the enactment of the Inflation Reduction Act of 2022 (IRA).

09/26/2023 - Biden Administration’s Focus on Unions Extends to OSHA and Inflation Reduction Act Projects

Beyond the recent, precedent-rewriting National Labor Relations Board decisions that have been making headlines, the Biden administration has been furthering its pro-labor agenda through other rulemaking efforts, from the US Department of Labor’s proposed rules updating Occupation Safety and Health Administration onsite inspection guidelines, to the US Department of the Treasury and Internal Revenue Service’s proposed regulations for obtaining clean industry tax credits subject to new requirements that in part encourage collective bargaining agreements.

06/23/2023 - Inflation Reduction Act Guidance Proposed on Direct Payment for Energy Credits

The Inflation Reduction Act of 2022 opened up many energy credit opportunities for tax-exempt organizations. The Internal Revenue Service (IRS) and US Treasury Department released on June 14, 2023 proposed regulations on the direct payment regime, which guidance should help organizations evaluate whether to engage in clean energy projects.

06/23/2023 - IRS and Treasury Release Credit Transfer Guidance Aiming to Jump Start Market for IRA's Clean Tech Industry Tax Credit Sales

On June 14, 2023, the Internal Revenue Service and US Department of the Treasury released temporary regulations and proposed regulations (collectively, the Transferability Guidance) relating to the transfer of certain clean technology industry federal income tax credits pursuant to Section 6418 of the Internal Revenue Code of 1986, as amended, which was enacted under the Inflation Reduction Act of 2022.

05/18/2023 - IRS Releases Highly Anticipated Guidance on Domestic Content IRA Tax Credit ‘Adder’

The Internal Revenue Service and US Department of the Treasury released Notice 2023-38 on May 12, which establishes rules for testing an applicable “green” energy facility’s eligibility for a bonus federal income tax credit amount (or “adder”) attributable to the steel, iron, or manufactured product that is a component of such facility being produced in the United States as enacted under the Inflation Reduction Act of 2022.

05/12/2023 - Inflation Reduction Act Guidance Anticipated on Direct Payment for Energy Credits

The Inflation Reduction Act of 2022 opened up many energy credit opportunities for tax-exempt organizations. Further guidance on the credit regime is anticipated in the coming months, which should help organizations determine the benefits of clean energy projects.

04/27/2023 - Equity, Environmental Justice, and Civil Rights: Cornerstones of the Biden Administration’s Environmental Agenda

Recent action by the Biden administration has made clear once more that advancing equity, environmental justice, and civil rights is a key component of the environmental agenda that it seeks to address through a “whole of government” approach.

04/11/2023 - Issues and Opportunities in Hydrogen Fuel Cell Development, Law360

Partner Pamela Wu wrote a Law360 Expert Analysis article on efforts to promote the development of hydrogen fuel cell technologies and expand hydrogen infrastructure to encourage the adoption of the resource for use in transportation—a sector targeted by the Biden administration for carbon emissions cuts.

April 04, 2023 (Updated May 12, 2023) - IRA's Energy Community Tax Credit ‘Adder’: IRS Releases Taxpayer-Favorable Guidance

The highly anticipated guidance for determining a “green” energy facility’s eligibility for the potentially valuable tax credit increase largely aligns with industry expectations, including by providing certainty on energy community qualification through IRS-published lists of eligible locations.

03/31/2023 - Electric Vehicle Manufacturers: Treasury Proposes Critical Mineral, Battery Component Requirements for Tax Credits, Power & Pipes

The US Department of Treasury issued its long-awaited proposed guidance on March 31, 2023 to implement the critical mineral and battery component watershed requirements of the Inflation Reduction Act (IRA), which significantly revised the tax credit incentive mechanism of the Internal Revenue Code (Code) that relates to electric vehicles (EVs). Since the IRA’s enactment, the critical mineral and battery component requirements have generated tremendous interest and comment from virtually all segments of the automotive, mining, and component manufacturing industries.

03/08/2023 - The Rise of Energy Storage

Energy storage: the technology that will cash the checks written by the renewable energy industry. Energy storage can transform intermittent clean energy—primarily derived from wind and solar—into a reliable source of 24/7 generation. As a result, energy storage has seen tremendous policy support from the public sector, including through federal investment tax credits in the United States, as well as a large influx of capital from private investors seeking environmental, social, and governance (ESG) focused investments.

03/03/2023 - Tips for Tapping Into New DOE Carbon Capture Funding, Law360

Pamela Wu wrote a Law360 Expert Analysis article on new federal funding opportunities for carbon capture projects at coal or natural gas generation facilities and non-generation industrial facilities. The article details the types of projects eligible for funds from the US Department of Energy and encourages companies to note future funding opportunities.

03/02/2023 - 2023 Key Considerations for Electric Vehicles and Hydrogen Fuel Cell Vehicles, Reuters

Partners Pamela Wu and Levi McAllister wrote an article for Reuters about some of the US commercial and legal issues associated with the widespread deployment of electric vehicles and hydrogen fuel cell vehicles, both seen as key to cutting carbon emissions from the transportation sector. The article covers the need for more public electric vehicle charging stations and the importance of developing a connective hydrogen infrastructure.

02/27/2023 - DOE $2.5B Funding to Advance Carbon Capture Projects at Power Plants and Industrial Facilities, Power & Pipes

The US Department of Energy (DOE) recently issued two funding opportunities for the development of carbon capture large-scale pilot projects and integrated carbon capture and storage projects at coal or natural gas generation facilities and at industrial facilities that are not purposed for electric generation.

02/27/2023 - Issues and Opportunities for the Electric Vehicles Industry in 2023

Electrification efforts of the US transportation sector are strong and growing. More than 800,000 fully electric vehicles (EVs) were sold in the United States in 2022, nearly 6% of all vehicles sold. In comparison, 3.2% of all vehicles sold in 2021 were fully EVs. Since 2011, there has been a 4,700% increase in sales in just 11 years. By every metric, there is a consistent pattern of an upward trajectory of EV growth in both the US and global markets.

02/16/2023 - IRS and DOE Publish Details on First Allocation of $10B Section 48C Green Technology Industry Tax Credits Authorized by IRA

The Internal Revenue Service (IRS), the Treasury Department (Treasury), and the Department of Energy (DOE) released Notice 2023-18 (Notice) on February 13, detailing the procedures through which the IRS and DOE will award a first round of allocations of tax credits under Section 48C of the Internal Revenue Code of 1986, as amended (Code), for certain green technology industry equipment manufacturing and recycling facilities and other greenhouse gas emission reduction projects. The Notice responds to the recent refresh of Section 48C credits under the Inflation Reduction Act of 2022 (IRA).

02/09/2023 - Spotlight on US EV Market: Key Issues for 2023, Automotive World

Partner Levi McAllister wrote an article for Automotive World discussing issues facing participants in the growing US electric vehicle (EV) market. These include the need for more public charging stations, new avenues to source battery materials, and the important role vehicle-to-grid (V2G) capabilities play in EV adoption.

02/08/2023 - How Responsible Labor and Trade Issues Affect the Solar Energy Industry, Power & Pipes

The solar power industry seems to be caught in the crosshairs of competing legislative agendas. The US Inflation Reduction Act (IRA) created incentives to increase solar capacity via tax credits. The Uyghur Forced Labor Prevention Act (UFLPA) creates a rebuttable presumption that any goods that were mined, produced, or manufactured, wholly or in part, in the Xinjiang Uyghur Autonomous Region (XUAR) were made with forced labor, and bars their importation into the United States. More than 90% of the world's ingots and wafers (made from polysilicon) are produced in China, and 80% of solar panels going into both residential and commercial projects in the United States come from abroad. The push for more solar capacity is potentially hindered by supply chain–based trade restrictions, resulting in competing agendas.

01/24/2023 - Green Tech, Clean Energy, and Other Trends Shaping 2023, Power & Pipes

While no one has a crystal ball for what 2023 will hold for the energy industry, the seemingly widespread support for green technology and clean energy is expected to carry through this year. In our industry outlook, “The Trends—and Traps—That Will Shape 2023,” we highlight some of the major green energy tax credit trends.

01/13/2023 - Industry Takeaways From IRS Guidance on EV Tax Credits, Law360

Partner Levi McAllister wrote a Law360 Expert Analysis article about recent guidance from the US Internal Revenue Service (IRS) and US Department of the Treasury regarding Inflation Reduction Act (IRA) tax credit eligibility for electric vehicles (EVs). Levi discusses recent IRA clarification around how the tax credits from the IRA can be used by EV manufacturers, EV battery and battery component manufacturers, and consumers.

01/03/2023 - IRS and Treasury Ring in New Year With Flurry of EV Tax Credit Issuances, Power & Pipes

Many people spent the last week of 2022 celebrating holidays or seeking travel adventures both far and near. However, a select group of personnel at the US Internal Revenue Service (IRS) and Department of the Treasury opted for a different path. On December 29, the IRS and Treasury issued a number of documents providing information and clarification on issues concerning tax credit eligibility for purchases of clean vehicles beginning in January 2023.

12/21/2022 - A New Era for Nuclear Energy Post Inflation Reduction Act, Reuters

Partners Ryan Lighty and Kirstin Gibbs wrote an article for Reuters discussing signs that the nuclear industry is poised for growth and investment in the coming years. The article notes provisions in the Inflation Reduction Act of 2022 and growing interest in environmental, social, and governance considerations by investors as some of the factors that could drive investment toward nuclear power plants.

12/02/2022 - Clean Hydrogen Developers Should Track Incentives, Risks, Law360

Partners Pamela Wu and Kirstin Gibbs authored a Law360 Expert Analysis column outlining considerations for developers and investors evaluating clean hydrogen projects, e.g., the potential to qualify for new funding and tax benefits.

12/01/2022 - IRS Publishes Critical Prevailing Wage and Apprenticeship Requirement Guidance for IRA Tax Credits

The Internal Revenue Service (IRS) published Notice 2022-61 (the Notice) in the November 30 Federal Register to provide guidance on the key prevailing wage and apprenticeship labor standards (W&A Requirements) generally required to obtain the full expected credit amount for tax credits enacted, expanded, or extended under the Inflation Reduction Act of 2022 (IRA). The W&A Requirements must be satisfied with respect to the construction of qualified facilities, properties, projects, or equipment (collectively, facilities) and, to varying extents, the alteration and repair of facilities.

11/21/2022 - Successful Oil Excise Tax Challenge Leads to Opportunities and Uncertainty for Exporters

A recent challenge to the constitutionality of the federal excise tax on domestic crude oil exported from the United States proved successful in the US Court of Appeals for the Fifth Circuit. While the US Department of Justice will seek to defend the tax in other circuits, the ruling could lead to a competitive advantage for domestic crude oil exporters located within the Fifth Circuit’s jurisdiction.

11/16/2022 - Voluntary Carbon Markets: What Role Should the CFTC Play?, Power & Pipes

The energy industry and market participants have provided a variety of comments on what role the Commodity Futures Trading Commission (CFTC) should play in the voluntary carbon markets, in response to a June 2022 request for information on how the CFTC can help enhance the integrity and transparency of the voluntary carbon markets and what aspects of the voluntary carbon markets are susceptible to fraud and manipulation.

10/10/2022 - The Inflation Reduction Act’s Significant Expansion of Green Technology Industry Tax Credits: Overview and Potential Investment and Monetization Opportunities, American College of Investment Counsel

Partner Casey August wrote an article for the American College of Investment Counsel highlighting select green technology tax credit provisions in the Inflation Reduction Act of 2022. The piece also touches on the potential market impacts and investment opportunities from said provisions.

10/04/2022 - EPA Announces Creation of Office of Environmental Justice and External Civil Rights

US Environmental Protection Agency Administrator Michael Regan announced on September 24 that the agency is establishing a new national office focused on advancing environmental justice and civil rights.

09/29/2022 - 5 Considerations When Seeking Federal EV Funding, Law360

Partners Levi McAllister and Sheila Armstrong and Senior Director Timothy Lynch wrote an article for Law360 covering key considerations for companies and individuals looking to use federal funding meant to encourage the adoption of electric vehicles. The article addresses access to charging infrastructure, ownership and operation of chargers, commercial agreements, vehicle-to-grid capacity, and the Inflation Reduction Act of 2022.

09/21/2022 - United States Gets Serious About Producing Hydrogen at Scale

The US government took important steps this year to promote a growing hydrogen economy. On August 16, 2022, shortly after the US Department of Energy (DOE) announced a game-changing program to fund $8 billion for the development of regional hydrogen hubs in accordance with the provisions of the Infrastructure Investment and Jobs Act, President Joseph Biden signed the Inflation Reduction Act (IRA) into law, funding approximately $369 billion in new renewable and green energy projects across the country.

09/19/2022 - The Ambitious Federal Plan to Support Electric Vehicles

Since President Biden took office, companies have invested nearly $85 billion in the manufacturing of electric vehicles (EVs), batteries, and EV chargers in the United States. This is triple the investment made in domestic EV manufacturing in 2020 and more the 28 times the investment in batteries from two years ago, and the sale of EVs in the United States has tripled in the same period. The Biden-Harris administration is crediting the increase in the development and adoption of EV to an aggressive and holistic funding strategy driven by the White House.

08/16/2022 - Inflation Reduction Act Creates $27B ‘Green Bank’ Fund for Clean Energy Projects, but False Claims Risks Exist

The new Inflation Reduction Act includes a $27 billion Greenhouse Gas Reduction Fund that will support competitive grants to national and local “green banks,” which will use the money to invest in projects and innovations intended to reduce or avoid greenhouse gas emissions and other forms of air pollution. While the fund will provide plenty of opportunity to those “green banks,” program applicants should be wary of potential pitfalls that could spark False Claims Act liability.

08/16/2022 - Inflation Reduction Act Creates New Corporate Minimum Tax

The Inflation Reduction Act of 2022, signed by US President Joseph Biden on August 16, 2022, includes a new alternative minimum tax for corporations with profits of more than $1 billion.

08/16/2022 - Inflation Reduction Act of 2022 Boosts Nuclear Power with Tax Credits and Funding

The Inflation Reduction Act of 2022 reflects a significant step toward meeting the United States’ greenhouse gas emission reduction targets from the Paris Convention and recognizes the indispensable role that nuclear power must play to achieve that commitment. The act contains several key provisions that bolster a broad spectrum of new and existing activities in the nuclear industry.

August 9, 2022 (Updated August 17, 2022) - Inflation Reduction Act: Initial Takeaways for Green Technology, Taxes, and Healthcare

The Inflation Reduction Act of 2022, which US President Joseph Biden signed into law August 16, will dramatically affect a range of climate change, healthcare, prescription drug pricing, and tax matters. With an investment of more than $400 billion in spending, the act is expected to bring in more than $700 billion in revenue.

08/04/2022 - Inflation Reduction Act Would Significantly Expand Federal Income Tax Benefits for Green Technology Industry

The Inflation Reduction Act of 2022 proposes significant changes and expansions to the existing federal income tax benefits for renewable energy, fuel production, and other green technologies.

Inflation Reduction Act of 2022

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