The Treasury Department finalized rules for a major clean energy tax cut Wednesday.
The credit, extended by the 2022 Inflation Reduction Act, is a potential boon for offshore wind, geothermal, energy storage and other sectors. It’s in effect for projects that begin construction before Jan. 1, 2025, at which point the current energy tax code is overhauled with two “tech-neutral” clean energy perks passed in the IRA.
“The Inflation Reduction Act has given clean energy project developers clarity and certainty to undertake major investments and produce new clean power to meet growing electricity demand,” Deputy Treasury Secretary Wally Adeyemo said in a statement. “Today’s announcement will help lower consumers’ utility bills, strengthen U.S. energy security, and create good-paying jobs.”
For geothermal power, the credit finalized Wednesday is in effect through 2034.
