The Inflation Reduction Act of 2022 (IRA) has introduced a bonus federal tax credit for projects built on brownfield sites. The credit is available for wind, solar, geothermal, and other renewable power projects, as well as energy storage facilities, green hydrogen projects, and biogas manufacturing plants. Project owners receive a 10% adder on top of either a Section 48 investment tax credit (ITC) or a Section 45 production tax credit. The IRS defines a “brownfield site” differently from the definition used by the Environmental Protection Agency (EPA) for Superfund liability and federal brownfield cleanup purposes. However, the EPA recently expanded its definition of hazardous substances under CERCLA to include polyfluoroalkyl substances, otherwise known as PFAS. A project developer that qualifies for the brownfield credit should avoid presenting a case that exposes it to potential cleanup liability or environmental remedial actions, thereby undermining the economic value of the credit.
Solar Dominates US Energy Capacity Growth
The Federal Energy Regulatory Commission (FERC) has published data showing that solar accounted for over 75% of US electrical generating
