The Inflation Reduction Act, commonly known as the IRA, has instigated several tax credit incentives that pertain to considerable investments in energy projects. A key credit among these is the section 48C investment tax credit, also known as the 48C Credit. Initially offered through the American Recovery and Reinvestment Act of 2009, this tax credit presents an intriguing opportunity for corporations and law firms invested in the energy sector.
While the July 31 deadline for this scheme may have passed, those professionals and corporations that overlooked it need not fear being out in the cold yet. The concept of the “late bird” – a piece of good news that comes after the supposed deadline – is not new in the legal world and is perhaps even truer in tax law. Especially with tax credits that carry as much weight for clients as the 48C Credit does.
The 48C Credit was designed to promote investment in manufacturing facilities for clean energy technology, aiming to bolster the American economy while also tackling climate change. Corporations and firms that did not get to participate before the July deadline still have a chance to reap the benefits.
However, interested parties should not wait around. The world of legal taxation operates on an ‘early bird gets the worm’ basis more often than not. If the potential rewards of the 48C Credit – both financially and environmentally – seem appealing, professionals should act swiftly and decisively to ensure they do not miss out yet again.
For more information on the 48C Energy Tax Credit and to understand how to apply for this incentive after the deadline, refer to Husch Blackwell LLP’s detailed report here.