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The mechanism for selling tax credits codified in the Inflation Reduction Act becomes a catalyst for the US energy transition

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The transformational Inflation Reduction Act (IRA) of US President Joe Biden’s team has opened the possibility of updating the US tax system through the system of tax credit transfers.

The number of such transfers increased rapidly in 2023. This has enabled more players in the US to invest in green energy initiatives, attracting those not associated with this sector.

The tax credit transfer instrument marks an important departure from the tax equity partnership, the main way to finance renewable energy projects.

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