IRA Tax Credit Research

Chapter Blurbs:

Speed and Scale (Case Study: eVAC): The IRA scale is unlike any previous climate legislation, but the speed to project completion has been lackluster. This chapter showcases eVAC’s rare earth magnet factory in Sumter, SC as a model for how community alignment, early permitting, and multi-source financing can accelerate IRA-funded projects.

Is the IRA Tech Neutral? (Case Study: geothermal): While the IRA aimed for technology neutrality, this chapter shows how traditional renewable tech like solar and wind still dominate due to better access to capital, tax credit markets, and labor structures. This leaves emerging tech like geothermal, nuclear, and carbon capture at a disadvantage.

Direct Pay (Case Studies: Tanana Chiefs Conference (TCC) and Sacramento Municipal Utility District (SMUD)): Direct pay provisions enable tax-exempt entities to claim clean energy tax credits for the first time, but major barriers like confusing tax forms and delayed reimbursements. We highlight success stories seen in TCC’s tribal solar project and SMUD’s wind build-out.

Innovation in Financing (Case Study: Reunion Infrastructure): The IRA’s biggest innovation may be financial, not technical. This chapter unpacks how transferability and hybrid models are transforming clean energy finance, expanding the market and accelerating deal flow.

Framework for Additionality: This chapter argues that the IRA’s additionality is nuanced, not always creating new projects, but reshaping their scale, siting, and financial viability, as seen across four diverse case studies.

Policy Recommendations: Drawing from 90+ expert interviews, this policy chapter recommends fixes to barriers holding back the IRA’s full impact, including expanding tax credit access for emerging tech and simplifying process.

Note: these papers were written and published in March of 2025.