On August 16, 2022, President Biden signed the Inflation Reduction Act (IRA) into law, marking one of the largest investments in the American economy, energy security, and climate that Congress has made in the nation’s history.
Across the economy, the IRA is creating opportunities to build projects, hire workers, and manufacture equipment needed to strengthen domestic supply chains, lower household energy costs while reducing greenhouse gas emissions, and pay good wages for those efforts. In this all-of-government effort, the U.S. Department of the Treasury is responsible for implementing major elements of the law, including tax incentives that spur investment in clean energy and manufacturing and that lower healthcare costs, corporate tax code reforms that enhance economic fairness, and Internal Revenue Service’s (IRS) efforts to dramatically improve customer service, modernize technology, and ensure the wealthy and large corporations pay the taxes they legally owe.
Treasury’s Office of Tax Policy and the IRS develop tax regulations and guidance to implement the IRA’s energy credits and other tax law changes. In addition, Treasury provides the American public informational resources about the law’s incentives, programs, and policies and tells the story of its impact.
The Inflation Reduction Act enhanced or created more than 20 tax incentives for clean energy and manufacturing. For many of these incentives, it created additional bonuses to enhance investments in communities and workers as well as mechanisms that will increase private sector investment and—for the first time—open access to certain clean energy tax incentives to tax-exempt entities, like state, local, and Tribal governments, rural electric cooperatives, and many more. It also created requirements in the incentives that strengthen supply chains for materials and equipment.
Find out more information about how the IRA’s incentives may help you using tools and analysis in our Taxpayer Resource Hub.
Read the latest guidance for the IRA’s tax incentives and related policies.
Impact and Stories
The Inflation Reduction Act’s investments are already making positive impacts on the lives of everyday Americans by creating good-paying jobs, strengthening our energy security, tackling climate change, and improving services that the IRS provides to taxpayers.
Read the latest analysis and stories about the impacts of the IRA.
The Federal Government offers a variety of resources and incentives under the Inflation Reduction Act.