
Context Nature and Scrubbed recently hosted a webinar that focused on the rapidly evolving landscape of green tax credits and how companies can maximize tax incentives and savings while driving sustainability.
Webinar speakers:
Gliezel David, Technical Accounting Group Director at Scrubbed
Ephi Banaynal dela Cruz, Co-founder and CEO of Context Nature
Sylvia Vaquer, Co-founder and CPO of Context Nature
Rachel McCleery, a senior advisor in the US Department of Treasury's Inflation Reduction Act Program Office
What are green tax credits?
Green tax credits are financial incentives provided by the government to promote environmentally friendly practices and technologies. The Inflation Reduction Act (IRA) of 2022 introduced 22 new or expanded tax provisions for clean energy investment, climate mitigation, and energy efficiency. It has led to investment of more than $265 billion in clean energy and helped create more than 330,000 direct and indirect jobs in the US.
The IRA's tax credits & incentives include:
Clean energy production credit
Clean energy investment credit
Advanced manufacturing production credit
Deductions for qualified energy efficient improvements to commercial buildings
Clean vehicle credit
Clean fuel production credit
Alternative fuel refueling property credit
Carbon capture credit
"We also have cross-cutting provisions, bonuses, and new credit monetization mechanisms that apply to multiple incentives," Rachel explained. "So, think of the IRA as a Venn diagram. And there are lots of areas where some of these credits and provisions overlap to maximize and increase the amount of the tax credit that you can get."
Which entities can benefit from green tax credits?
Depending on the credit and its qualifications, tax paying entities and partnerships as well as tax-exempt entities can benefit. Larger corporations, guided by their tax advisors, have started to take advantage of IRA-related tax credits. Nonetheless, in many circumstances smaller business are equally eligible but are either unaware or have not had the right support system to navigate the complexity to successfully claim these.
Want to learn more and understand if you qualify? Click here.
Diving into the Advanced Manufacturing Production tax credit
The Advanced Manufacturing Production tax credit incentivizes production of clean energy manufacturing components, including solar cells, inverters, batteries and applicable critical minerals. This tax credit is multiplied per each clean energy component domestically manufactured and sold, helping manufacturers and "small businesses maximize the type of capital they need in the long run," Rachel highlighted.
How to calculate and claim the Advanced Manufacturing Production Credit?
Rachel walked the attendees through calculating and claiming the credit, noting that the application process differs depending on whether a business has a tax liability. Companies without a tax liability must first create an online business account with the IRS and pre-file for energy credits. Firms with a tax liability will complete IRS Form 7202 and file it with federal income taxes.

Using credits to drive sustainability
Green tax credits are one of the most important opportunities for businesses of all sizes to drive sustainability while maximizing financial advantages. However, the process can be challenging and successfully claiming the incentives requires careful planning, a thorough understanding of eligibility, and accurate paperwork.
Contact Scrubbed for a more detailed discussion about how your business can maximize Green Tax Incentives.
Learn more on how Context Nature helps tax accounting teams automate discovery & streamline document collection.