Inflation Reduction Act: Tax Credits & Opportunities for U.S. Businesses in 2026

Key IRA Tax Credit Provisions

The Inflation Reduction Act (IRA) created and extended dozens of clean energy tax credits worth hundreds of billions of dollars. Businesses across manufacturing, energy, real estate, and transportation have significant opportunities to reduce their federal tax burden.

Our tax advisory team has identified the most impactful provisions for U.S. middle-market businesses, including the Section 48C Advanced Manufacturing Credit, Section 45X Production Tax Credit, and the expanded Section 179D Energy Efficiency deduction.

Who Qualifies?

From manufacturers installing energy-efficient equipment to developers building solar farms and property owners upgrading building systems, the IRA's reach is broad. The direct pay and transferability provisions have also opened these credits to tax-exempt entities for the first time.

Act Now: Time-Sensitive Provisions

Several provisions have bonus credits tied to domestic content and energy community requirements that are subject to annual caps. Early movers will have significant advantages in securing these enhanced credit rates.