Clean Energy Industry Eager for Answers to Use Biden Tax Breaks
Tax attorney Nicole Elliott spoke with Bloomberg Law about the request for public input on definitions, timing and the application of the energy incentives in the Inflation Reduction Act (IRA). Energy investors, electric vehicle makers and equipment manufacturers are working to decide what questions they need answered from the Internal Revenue Service (IRS) on these new incentives. Tax advisers say they’re encouraging their clients to be proactive in the conversation about what they need from the agency, but companies may opt to take a wait-and-see approach before making project decisions, heightening the need for guidance to get the full benefit of the law’s $270 billion in tax breaks.
“Not only do we have a lot of effective dates coming up, but taxpayers generally need a long kind of lag time to get their arms around the rules to make financial decisions,” said Ms. Elliott. The open-ended nature of the questions could make it difficult for comments and is a “blessing and a curse,” she added. “There’s nothing to take aim at.”
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