88th Annual API Federal Tax Forum
Bracewell Partners Steven Lorch and Don Lonczak will present on “Renewable Natural Gas and Renewable Fuels under the Inflation Reduction Act” at the 88th Annual API Federal Tax Forum. Pipeline-grade renewable natural gas (RNG) and renewable fuels, including sustainable aviation fuel (SAF), are viewed as safe, reliable, and low carbon alternatives to conventional natural gas and fuel and they are expected to emerge as key elements of the energy transition, particularly in light of new federal income tax credits under the Inflation Reduction Act of 2022 (IRA). This presentation will begin with a review of the federal income tax credits for RNG and renewable fuels that were available before the passage of the IRA and then will discuss the new credits under the IRA, including the investment tax credit for biogas facilities under Section 48 of the Internal Revenue Code of 1986, as amended (the Code), the SAF credit under Section 40B of the Code, and the clean fuels production credit under Section 45Z of the Code. Steven and Don will discuss certain limitations on the ability of taxpayers to claim multiple types of federal income tax credits with respect to the same project or facility (that is, the so-called “anti-stacking” rules). Finally, they will discuss various strategies that RNG and renewable fuels developers and investors are employing in order to claim, or plan to claim, the federal income tax credits available under the IRA, including opportunities to monetize these credits.
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