The Inflation Reduction Act (“IRA”) was recently signed into law by President Biden, becoming one of the largest federal investments in incentive programs of this type in recent years. As a result, Aon expects investments in renewable energy projects to continue to grow as tax credits continue to be used as a primary federal incentive to encourage investment in solar, wind and other renewable energy projects. Tax Credits are relied upon by institutional tax equity investors to support funding for these projects and these investors remain passive participants, subject to numerous insurable tax risks.
Tax Credit Insurance after the Inflation Reduction Act
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