Inflation Reduction Act (IRA)

Enacted in 2022, the Inflation Reduction Act (IRA), enacted in 2022, stands as a pivotal United States federal law with a multifaceted approach addressing inflation, climate change, and healthcare costs. Representing the largest investment in climate action in U.S. history, the IRA is poised to achieve a substantial 40% reduction in greenhouse gas emissions by 2030.

This groundbreaking legislation incorporates diverse provisions strategically designed to curtail greenhouse gas emissions, foster renewable energy initiatives, and catalyze job creation within the burgeoning clean energy sector. Notably, the IRA allocates a substantial $369 billion investment in clean energy and climate change mitigation. This encompasses tax incentives for renewable energy projects, capital infusion into clean energy manufacturing, and financial support for climate research endeavors.

Emphasizing its commitment to advancing technologies that actively contribute to carbon neutrality, the IRA prioritizes Negative Carbon Use (NCU) technologies. These innovative solutions play a pivotal role in offsetting greenhouse gas emissions, offering companies a spectrum of benefits, including tax credits, government funding, and heightened market demand. Consequently, the IRA presents a momentous opportunity for corporations specializing in NCU technologies.

Aemetis Inc.: A Trailblazing Use Case

A prominent player in this landscape is Aemetis Inc., a leading renewable natural gas and renewable fuels company actively developing and implementing NCU technologies. Aemetis Biogas, its subsidiary, recently concluded a landmark transaction, closing the sale of $53 million in IRA tax credits. This transaction marks the largest IRA tax credit deal in the dairy biogas industry to date, showcasing the versatility of tax credits transferability under the federal Inflation Reduction Act.

Aemetis Biogas’s noteworthy project is projected to qualify for over $800 million in IRA investment and production tax credits over the next four years. Furthermore, it is anticipated to reduce greenhouse gas emissions equivalent to an estimated 6.8 million metric tons of carbon dioxide over a decade. This underscores the tangible impact and financial viability of NCU technologies under the IRA framework.

Guiding corporations through the intricate legal landscape of NCU technologies is Structure Law Group, a Silicon Valley-based business law firm. Renowned for its expertise, the firm provides invaluable counsel on the development, deployment, and financing of NCU projects. Structure Law Group recently facilitated the sale of $53 million in IRA tax credits for Aemetis Inc.’s Biogas project, exemplifying the firm’s dedication to enabling companies to lead the way in NCU initiatives.

Structure Law Group’s commitment extends beyond legal counsel, as its seasoned attorneys actively support clients in navigating regulatory frameworks and securing financing for NCU projects. With an in-depth understanding of the IRA’s provisions and their specific applications to NCU technologies, the firm positions itself as a trusted partner for corporations seeking to capitalize on the opportunities presented by this groundbreaking legislation.

If your company is at the forefront of developing or deploying NCU technologies, Structure Law Group stands ready to assist you in achieving your strategic objectives. Contact the firm today to explore how their expertise can contribute to the success of your NCU initiatives and corporate goals.