While former President Donald Trump has vowed to roll back funding aimed at an energy transition if elected in November – which includes the Inflation Reduction Act – the future of the IRA is not so clear-cut because it includes many provisions that are advantageous to Republicans.
Bracewell’s Tim Urban told Agenda that some IRA provisions build on legislation that is already well understood and well established, while others are a bigger departure from previous energy policy.
One of the IRA’s more radical provisions concerns technology-neutral tax credits, added Urban. Entrepreneurs building renewable energy facilities would be eligible for these tax credits based on their performance in reducing carbon emissions, regardless of the type of technology they are using.
