The IRS will successfully implement the IRA climate provisions now, but it will require precise focus and innovation on a short timeline

The bulk of the climate and energy spending included in that law — $270 billion of the nearly $370 billion total — will be delivered through tax incentives. That means the Treasury Department and the IRS — agencies that aren’t always associated with climate policy — will be at the center of the law’s implementation. “While our agency has experience with existing tax credits for many clean energy activities, the Inflation Reduction Act requires a vast amount of innovative work in a short period of time,” Deputy Treasury Secretary Wally Adeyemo told reporters Wednesday. The department is preparing to roll out guidance and rules in the coming months “to implement the tax revisions that will enable the transformation that is needed to make these investments real,” he added, noting that it will be a sprint for the agency to comply. “This is an important responsibility, and Treasury stands ready to meet it,” Adeyemo said.