Insurance Market Sees Entry Into Sellable Energy Tax Credits

Companies eager to get a slice of the billions of dollars of clean energy tax credits from the Biden administration’s tax-and-climate law are finding an extra layer of security from insurance firms and brokers.

The August 2022 Inflation Reduction Act creates paths for taxpayers to increase their clean energy tax credit amount to up to 70% of project costs and allows for many of those credits to be bought and sold.

But the newness of the law and remaining ambiguities leave many companies weighing the risk of claiming credits. If there is a challenge to a tax credit in an ...