The U.S. renewable energy industry is transforming faster than ever, and so are the tax incentives fueling it. New credits, new bonus opportunities, and new monetization strategies have boosted value for project owners, investors, and credit buyers. But with these opportunities come complexity, and uncertainty in the tax rules can put deal timelines, financing and profitability at risk.
This is where tax insurance proves its value, by safeguarding project economics.
A new era of renewable energy incentives
The Inflation Reduction Act (IRA) opened the door to larger credits and expanded eligibility, while also allowing tax credits to be sold to unrelated buyers looking to offset their own tax liabilities. This created a powerful new market for transferable tax credits and brought fresh capital into renewable projects.
At the same time, the IRA introduced new compliance hurdles, such as prevailing wage and apprenticeship (PWA) requirements, which can materially affect project economics if they’re not met.
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