Clean Energy Sector Gears Up for Next Challenge: IRS Audits

Tax attorney Daniel Strickland was quoted in a Bloomberg Tax article exploring how and when the IRS could begin audits of clean energy tax credits awarded under the Inflation Reduction Act. In a survey by energy tax credit transfer platform Crux Climate Inc., renewable energy project developers and investors cited IRS audits among their chief concerns for 2025, particularly as the Trump Administration targets the landmark tax and climate law and related regulations for review and possible repeal. Tax professionals including Mr. Strickland commented that the nature of the credits themselves, from their extensive add-ons to their overall popularity, coupled with their transferability, make them a prime option for federal enforcement.

"We see IRS enforcement happen in phases," he explained. "We've done micro-captives. We've done syndicated conservation easements. We've done planes. We've done high-net-worth individuals. We've done employee retention credits. It brings up the question of, what is the next area that is ripe for potential abuse?"

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