September 14, 2022

Allan Marks Discusses Renewable Energy Tax Credits and the Inflation Reduction Act’s Impact on Project Financings


Milbank LLP Global Project, Energy and Infrastructure Finance partner Allan Marks spoke on the Proximo Infra podcast about the Inflation Reduction Act and how the US incentivizes renewable energy development through production tax credits (PTC) and investment tax credits (ITC).

He explained how the Inflation Reduction Act encourages investment by expanding the use of tax credits for clean energy projects, domestic supply chains and skilled jobs.  Mr. Marks forecasts market impacts for investors, analyzes transferability and monetization of tax credits, and criticizes one aspect of the bill affecting wind and solar projects on federal land and new offshore wind leases. He also discussed how the Act permits municipal utilities, rural cooperatives and Native American tribes to use the tax credits via direct pay. This could, Mr. Marks notes, make these stakeholders less dependent on power purchase agreements and better facilitate their participation in the renewables sector.

Listen to Mr. Marks’ analysis of the new law’s impact on the market here.