Renewable Energy Tax Credit Incentives

Is It Time to Add Renewable Energy to Help Manage Your Business Costs and Energy Security?

The Inflation Reduction Act of 2022 brought the most significant and transformative renewable energy incentive opportunities to help US businesses manage and substantially reduce their energy costs and improve their energy security.


The Inflation Reduction Act modifies and extends the clean energy Investment Tax Credit to provide a credit from 6% to 50% for qualifying investments in wind, solar, energy storage, and other renewable energy projects.


Tri-Merit has a team of experts with deep technical knowledge and extensive industry experience in the field of renewable energy tax incentives.  If you are interested in learning more, or if you are inquiring about a specific project, please provide us with some high-level information, and one of our subject-matter experts will get back to you promptly.

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Frequently Asked Questions

How do I know if my business can qualify for a Renewable Energy Investment Tax Credit (RE-ITC)?

Virtually any business or facility that uses electricity to generate heat, light, or produce goods or services can take advantage of the RE-ITC which can be up to 30% of your qualified costs for renewable energy property placed in service after January 31, 2021, and where construction begins by December 31, 2024. Discuss with your energy consultants to learn more about your renewable options then we can assist in determining qualification and pro forma estimated benefits for finance and tax planning purposes.

What are “qualified costs” for the RE-ITC, and how do I document them for tax purposes?

Once you have considered your choices, we can review your plans and provide tax guidance by identifying “qualified energy property” for maximizing your RE-ITC. Typically this includes property used in constructing or installing equipment or facilities for renewable energy generation. We can also evaluate related energy components, including newly allowable microgrid connection and battery storage installations, and provide a detailed cost allocation report for filing purposes. Often this is done in conjunction with a cost segregation study which we can also provide and issue a comprehensive report for tax filing. This will be especially important if you choose to sell your RE-ITC’s.

What if I can’t use the RE-ITC against my current tax liability?

You, as the taxpayer, have several options when determining the use of the generated RE-ITC’s. If you are a not-for-profit, an election can be made to treat the RE-ITC as a tax payment, effectively making it a refundable tax credit that you can claim on your annual return. If you are a for-profit business, the RE-ITC can offset AMT, and then to the extent you cannot use the RE-ITC against current tax, it can either be carried back 3 years and forward 22 years or sold on a market exchange. If sold, due diligence will likely need to be performed to assure the value of the credits and to prevent overstatement and the 20% excess claim penalty.

Where can I learn more about options and the best choices for my business?

Our RE-ITC specialists can review the available alternatives with you and your energy team and consult on the qualification rules and best methods to capture costs. We can also prepare calculations and a report to substantiate credits to support tax filings and the due diligence process if you intend to sell your RE-ITC on the transfer market. If you do not have an energy engineer, we work with a number of consultants who would gladly help navigate the complexities and advantages, and disadvantages of various renewable energy types and their requirements.

Ready to learn more? We’re here for you.