Description: Extends qualified business income deduction from 2025 through 2027. Provides a 20% deduction on business income

Amount: 20% deduction

Eligible Entities: Businesses with total taxable income below $170,050 for single filers or $340,100 for joint filers. If your income is above this threshold, you may still qualify but for a more limited deduction. Generally, entities that qualify include: 

Resources:

IRS Qualified Business Income Deduction Info Page

Description: Qualified small businesses can apply for up to $500,000 in tax credits to offset their payroll taxes 

Amount: Up to $500,000 

Eligibility: taxpayers with gross receipts of less than $5 million for the tax year, and no gross receipts for any tax year more than five years prior to the end of the current tax year 

Resources:

KBKG Article

Moss Adams Article

Description: Provides a tax credit for businesses that own solar system and have it installed and operational after 2022.  The credit is set to extend until 2034 through the federal Inflation Reduction Act (IRA).

• Full credit of 3%0

Eligible Entities: Fuel cell, solar, geothermal, small wind, energy storage, biogas, microgrid controllers, and combined heat and power properties

Resources:

Federal Solar Tax Credit for Businesses

Description: Provides a tax credit for production of electricity from renewable sources for projects beginning construction before 1/1/25. 

Amount:

• Base amount: $0.03/kW, inflation adjusted
• Credit is increased by 5 times for projects meeting prevailing wage and registered apprenticeship requirements
• Credit is increased by 10% if the project meets certain domestic content requirements for steel, iron, and manufactured products.  
• Credit is increased by 10% if located in an energy community. 

Eligible Entities: Facilities generating electricity from wind, biomass, geothermal, solar, small irrigation, landfill and trash, hydropower, and marine and hydrokinetic renewable energy. 

Resources: 

EPA Renewable Electricity Production Tax Info Page

Description: Provides a tax credit for purchasers of qualified commercial clean vehicles 

Amount: 30% tax credit up to $7,500 for vehicles weighing less than 14,000 pounds, and up to $40,000 for vehicles weighing more than 14,000 pounds.

Eligible Entities: Businesses that acquire motor vehicles or mobile machinery for use or lease; tax-exempt entities that acquire them for use.

Resources:

IRS Commercial Clean Vehicle Credit

Description: Provides a tax credit for alternative fuel vehicle refueling and charging property in low-income and rural areas. Alternative fuels include electricity, ethanol, natural gas, hydrogen, biodiesel, and others. 

Amount: 30% tax credit up to $100,000 per station for commercial property and up to $1,000 per station for residential property.

Eligibility: The qualified alternative fuel vehicle refueling property must be for clean burning fuels, as defined in the statute, and must be located in low-income or rural areas. 

Resources:

National Law Review: EV Charging Station Tax Credits are Back

U.S. Department of Energy Page

Description: Provides a credit for carbon dioxide sequestration coupled with permitted end uses within the United States. 

Amount: Up to $85 per ton of carbon dioxide permanently stored and up to $60 per ton of carbon dioxide used for enhanced oil recovery or other industrial uses of carbon dioxide.

Eligibility: U.S. facilities within minimum volumes: 1,000 metric tons of CO2 per year for DAC facilities; 18,750 metric tons for electricity generating facilities (with carbon capture capacity of 75% of baseline CO2 production); 12,500 metric tons for other facilities.

Resources:

IEA (International Energy Agency) Article

Description: Tax credit for electricity produced at a qualified nuclear power facility. 

Amount:

• Base credit: 0.3 cents/kWh, inflation adjusted after 2024. Credit amount phases down depending on the amount of energy produced and the gross receipts of the nuclear power facility. 
• 5 times the base credit if prevailing wage requirement is met for workers doing alteration or repair at the facility.

Resources:

Office of Nuclear Energy Article

Description: Provides a tax credit to produce clean hydrogen at a qualified clean hydrogen production facility.

Amount:

• Base credit: $0.60/kg multiplied by the applicable percentage. The applicable percentage ranges from 20% to 100% depending on lifecycle greenhouse gas emissions. The $0.60/kg is adjusted for inflation.
• 5 times the base credit if the facility meets prevailing wage and registered apprenticeship requirements. 

Eligibility: Producers of hydrogen in the United States

Resources:

Bloomberg Tax: The New Clean  Hydrogen Production Tax Credit, Explained

Description: Provides a tax credit for domestic production of clean transportation fuels, including sustainable aviation fuels. 

Amount:

• Base credit: $0.20/gallon for non-aviation fuel and $0.35/gallon for aviation fuel, multiplied by the carbon dioxide “emissions factor” of the fuel. Inflation adjusted after 2024. 
• Credit is 5 times the base amount ($1/gallon for non-aviation fuel, $1.75 gallon for aviation fuel, multiplied by the emissions factor) for facilities meeting prevailing wage and registered apprenticeship requirements. Inflation adjusted after 2024. 

Eligibility: Registered producers in the United States. Fuels with less than 50 kilograms of carbon dioxide equivalent per million British thermal units (CO2e per mmBTU) qualify as clean fuels eligible for credits. 

Resources:

Growth Energy Info Page

Description: Provides a production tax credit for domestic manufacturing of components for solar and wind energy, inverters, battery components, and critical minerals. 

Amount: Credit amount varies by technology

Eligibility: Domestic manufacturers 

Resources: 

International Energy Agency Info Page

Definition: Provides a tax credit for investments in advanced energy projects, as defined below

Amount: 

Eligibility: A project that

(1) re-equips, expands, or establishes an industrial or manufacturing facility for the production or recycling of a range of clean energy equipment and vehicles;

(2) re-equips an industrial or manufacturing facility with equipment designed to reduce greenhouse gas emissions by at least 20 percent; or

(3) re-equips, expands, or establishes an industrial facility for the processing, refining, or recycling of critical materials. 

Description: Provides a tax deduction for energy efficiency improvements to commercial buildings, such as improvements to interior lighting; heating, cooling, ventilation, and hot water; and building envelope. Tax exempt entities can pass credits through to the designer or developer of the property.

Amount: 

Eligibility: Owners and long-term lessees of commercial buildings. Designers of energy efficient building property (architects, engineers). Tax-exempt owners of commercial properties, pending Treasury guidance on deduction allocation. 

Resources:

Fact Sheet from Moss Adams

Article from Mintz

Description: Companies that report over $1 billion in profits must pay 15% corporate alternative minimum tax   

Resources:

IRS Guidance

Description: Starting in 2023, publicly traded US corporations will be subject to a 1% nondeductible excise tax on the fair market value of any of their stock purchases over $1 million

Resources:

IRS Guidance

Description: A rule that limits the amount a non-corporate taxpayer can deduct to offset nonbusiness income, extended through 2028 

Amount: Limit of $270,00 for single filers and $540,000 for joint filers in 2022, adjusted annually for inflation

Resources:

Moss Adams Overview of Tax Implications

Description: To support the development and standardization of environmental product declarations, including measurements of the embodied greenhouse gas emissions of construction materials and products. 

Amount: $250 million 

Eligibility: Businesses that manufacture construction materials/products, and states, Tribes, and nonprofit organizations that will support such businesses 

Resources:

EPA Seeking Input Until May 2023

Description: Grants to purchase and install zero-emission port equipment and technology, conduct associated planning or permitting activities for this equipment and technology, and develop climate action plans to further address air pollution at ports. 

Amount: $3 billion 

Eligible entities: States, local governments, port authorities, clean air agencies and private entities that conduct operations at a port 

Funding Source: EPA 

Resources:

EPA Ports Initiative