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Pilar Thomas Writes Bloomberg Law Article About IRA Tax Credits Impact on Tribal Clean Energy Plans


In an article for Bloomberg Law, Pilar Thomas explained how new tax credits implemented as part of the Inflation Reduction Act (IRA) create an opportunity for federally recognized American Indian tribes to reduce the costs of clean energy projects on tribal land.

Thomas, a Tucson, Ariz.-based partner in the Energy & Infrastructure and Indian Law & Policy Groups, outlined what the IRA tax credits mean for tribes looking to transition to clean energy. An excerpt:

Key tax credits tribes can access are substantial:

  • Between 30% and 70% investment tax credit for renewable energy projects (solar, wind, geothermal, storage, interconnection), which includes a bonus tax credit for projects located on American Indian lands or that serve tribal housing and residences.
  • Up to 30% for alternative fuel refueling property, such as electric vehicle charging stations (with limits), carbon oxide sequestration projects, qualified commercial electric vehicles (with limits), and advanced energy manufacturing facilities.
  • Up to $3 per kilogram for clean hydrogen production.
  • Up to 3 cents per kilowatt for solar or wind energy production.

With direct pay, tribal governments will be eligible to claim and receive a payment from the IRS equal to the amount of tax credit. This payment will be made after the project is placed in production, so it serves as a refund (rebate) and not as a grant.

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