Clean Energy Tax Perk Will Keep Enviro Attys Busy

Tax attorney Amish Shah was interviewed by Law360 about tax credits for clean energy projects and how recent federal guidance can aid developers. The Inflation Reduction Act (IRA) passed in 2022 offers tax benefits for building projects in energy communities, which include high-unemployment areas historically home to fossil fuel industry jobs as well as brownfields. Guidance released by the IRS and U.S. Department of the Treasury provides a workable definition of an "energy community" but is less clear for projects built on brownfields. Mr. Shah said although developers won't focus solely on the bonus when planning projects, bringing in environmental attorneys to advise on brownfield project eligibility will be important.

"If you're relying on the brownfield category, there are significant dollars at issue, and ultimately, being able to qualify for the energy communities bonus for a number of projects may make [them] pencil out," he said. "We're regularly bringing in our environmental team to make sure we're fully comfortable that a project qualifies under the brownfield category."

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