America continues it’s green transition. Wide-sweeping in scope, the newly enacted Inflation Reduction Act will help the United States meet climate goals while stimulating the economy. Perhaps more importantly, the IRA should lessen our reliance on fossil fuels. The legislation comes just in time. Climate activists said the world is reaching the tipping point in mitigating the disastrous effects of a warming planet. With any luck, IRA tax incentives will jumpstart the nascent renewable energy sector of the economy, helping to reduce carbon emissions worldwide. Through 2025, the IRA will provide a tax credits to eligible organizations and governments for green energy manufacturing.
A Boost to the Economy
Altogether, the IRA extends the clean energy Investment Tax Credit up to 30 percent for qualifying investments in wind, solar, energy storage and other renewable energies. But what does this have to do with inflation, you might ask? Admittedly, the name sounds a little misleading, and probably has more to do with the upcoming election year more than anything. But proponents of the bill are asking Americans to take a look at the bigger picture. Economic vitality and growth isn’t just about lowering gas prices. The IRA will hopefully work to stimulate the American economy, so the nation remains globally competitive in the revamped Information Age. American manufacturing will slowly transition from a carbon-based foundation to renewable energies. You don’t have to look far to see early indications of the legislation’s success. Already, the Inflation Adjustment Act has created 170,000 new jobs and projections indicate an additional 1.5 million in the coming decade.
The Inflation Reduction Act and Chemical Storage
What won’t change with the legislation is modern manufacturing’s need for compliant chemical storage. Modern industry will continue to rely on lubricants, powerful degreasers and toxic transfer fluids for energy production in the revitalized economy. The effects have already been felt in battery manufacturing, which may receive production credits for battery cells and modules. As you might imagine, electric vehicles will be commonplace in the future. At least nine stats have already begun to phase out gas vehicles by outlawing their sale by 2035. Instead, the cars of tomorrow will be exclusively electric. And what powers these cars? Rechargeable batteries. Compliant fire-rated battery storage protection will be paramount for the automotive industry and its peripheries.
Is Your Company Eligible For Tax Credits?
If your company is thinking about “going green,” now is the time. The Inflation Reduction Act will impact the entire American economy. Every industry from agriculture, clean energy and manufacturing to transportation and the construction industry will be eligible for tax credits. Basically, any industry that uses a renewable energy argument as a component of their business is eligible for the funds. Don’t be afraid to get a little creative with your pitch either. Conservation and pollution prevention can be the perfect segue for any company looking to capitalize on the tax credits. Every company needs compliant chemical storage – it’s required by federal law. Almost every company routinely handles dangerous and flammable chemicals. By citing your intent to invest the credits into compliant chemical storage, you increase your chances of receiving federal subsidies. Investing those funds into fire-rated or non fire-rated chemical storage from U.S. Hazmat Storage can reduce your overhead and invest that money back into production. Our hazmat storage lockers are designed and manufactured in the US. The IRA provides bonus credits for those who meet requirements to use materials produced in the country, thus further supporting manufacturing jobs in the clean energy supply chain. Contact us today for a free quote!
