Renewable Energy Tax Risk Management Strategies

This document is a guide that outlines key strategies for renewable energy companies to manage tax risks in the United States, particularly in light of recent changes within the Internal Revenue Service (IRS). It discusses the implications of the Inflation Reduction Act (IRA) and the IRS's strategic operating plan for 2023-2031, which focuses on enhancing enforcement and compliance coverage. The guide highlights two primary steps companies can take: investing in tax insurance and bringing tax expertise in-house. Tax insurance is presented as a means to mitigate uncertainties associated with tax compliance, especially during mergers and acquisitions. Additionally, the document emphasizes the importance of having internal tax professionals to navigate new tax laws and ensure compliance. The summary also notes the potential impact of IRS personnel changes and reduced audit staff on the renewable energy sector, stressing the need for companies to adapt to an evolving regulatory landscape to secure financing and maintain operational stability.