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In today’s brief:

• New guidance on IRA tax credits for cities, states, and nonprofits

• Toyota plans to introduce high-performance solid-state batteries

• DOE to invest $192m in battery recycling R&D

Let’s dive in!

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THE BIG IDEA

New guidance on IRA tax credits

The IRS has issued new guidance on tax credit transferability and direct-pay provisions under the IRA.

Why it matters: New guidance opens doors for state, city, and local governments, as well as nonprofit entities, to access valuable tax credits under the Biden administration's climate bill.

• This guidance has the potential to facilitate clean energy investments in various sectors and expand the benefits of clean energy to communities across America.

Why it's happening: The goal is to expand renewable energy investment and allow public and nonprofit entities to take advantage of federal incentives.

• In the past, tax credits were typically limited to profit-driven companies, excluding states, tribes, local governments, and nonprofits.

• However, the Inflation Reduction Act (IRA) changed the landscape by providing tax credits to tax-exempt entities. Now, tax-exempt organizations can receive payments equal to the full value of the tax credits for qualifying clean energy projects.

• This significant shift aims to promote the adoption of clean energy solutions and support various organizations in reducing energy costs and furthering their missions.

What’s next: The recent guidance not only enables tax-exempt entities to access the full value of tax credits but also addresses the concept of "transferability."

• Transferability allows for-profit companies to sell their tax credits to third parties, providing them with the cash value of those credits.

• This comprehensive guidance is expected to accelerate clean energy deployment, attract more governments and nonprofits to participate, and make it easier for cutting-edge clean energy businesses to benefit from the available credits.

Hot take: The more guidance from the feds, even if it’s not perfect, the faster the intended benefits of the IRA can take hold.

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QUICK DEBRIEF

Duke Energy will sell its 3.4 GW commercial renewables business to Brookfield Renewable Partners for $2.8 billion, enabling Duke to focus on regulated businesses and grid reliability investments. Read more.

Commonwealth Fusion Systems has raised over $2 billion in funding to develop a fusion reactor. Fusion, which mimics the energy production of stars, is considered the "Holy Grail" of clean energy due to its efficiency and lack of greenhouse gas emissions. Read more.

Forum Mobility is constructing a large electric truck charging depot in Livermore, California, capable of serving up to 96 battery-powered heavy-duty trucks. The depot is set to open in summer 2024. Read more.

Energy companies are anticipating a surge in liquefied natural gas (LNG) demand, driven by increasing European demand and the decarbonization efforts of emerging markets. Read more.

Toyota plans to introduce high-performance solid-state batteries and other technologies to enhance the range and affordability of its future electric vehicles (EVs), signaling a strategic shift and boosting its shares. The company aims to launch next-generation lithium-ion batteries by 2026. Read more.

The US Department of Energy (DOE) has allocated $192 million for battery recycling R&D to support the growth of the domestic supply chain and meet the increasing demand for lithium batteries driven by electric vehicles and stationary energy storage. The lithium storage market is projected to expand tenfold by 2030. Read more.

Anker's new Solix line of large batteries can power an entire home during outages, addressing grid stress caused by climate change. The modular system offers capacities from 5kWh to 180kWh. Read more.

CHARTS & DATA

Global solar panel prices are falling due to increased silicon supply, signaling a price correction in the industry.

However, the drop in prices has not yet affected the United States due to tariffs and trade barriers. Read more.

DIVE DEEPER

The billion-dollar ponzi scheme that hooked Warren Buffett and the US Treasury

How a small-town auto mechanic peddling a green-energy breakthrough pulled off a massive scam. via The Atlantic.

Reverse logistics to reverse landfilling

If reverse logistics isn’t a concept you’ve ever heard of, that’s because 99% of focus historically has been on forward logistics. I.e., how do you get a product from point A to point B? For the most part, after point B (and after people use a product), things go to a landfill. via Keep Cool.

DOE’s new tool helps you get your share of the climate law’s billions

The Biden administration launched a hub to walk you through the process of accessing Inflation Reduction Act incentives for energy audits, heat pumps, EVs and more. via Canary Media.

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