Manufacturers, Business Groups See Mix of Opportunity and Challenges with Inflation Reduction Act

The passage of the Inflation Reduction Act promises new business opportunities and tax credits for those with a focus in renewable energy, while also presenting future potential challenges for companies.

According to partner Tom Alongi, the legislation is essentially a "reallocation of capital to green energy." It creates opportunities for manufacturer and supplier to tap into the new tax credits, he noted. While credit amounts are dependent on the production type, supplier of eligible solar, wind, inverter and battery components and critical materials will reap the rewards for any components produced and sold after Dec. 31.

However, the electric vehicle tax credit--currently worth between $4,000 and $7,500 for the purchase of an electric vehicle--will likely need to be revisited, according to Alongi.

The bill also contains a significant investment in strengthening the IRS, which Alongi pointed out could mean an increase in audits for companies. He anticipated a resultant increase in time, money, and stress for taxpayers and advisers.

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