Market history · Policy ·
The Inflation Reduction Act is signed
President Biden signed the Inflation Reduction Act on 16 August 2022. Its climate and energy provisions offered tax credits and grants over a decade for clean electricity, energy storage, electric vehicles, domestic manufacturing and related supply chains, according to the US Treasury and the Congressional Research Service.
For investors in power generation, grids, storage and the metals and materials behind them, the law improved the economics of many projects and shifted where they would be built. It also drew criticism and concern from US trading partners, and some of its provisions have since been changed by later legislation.
Policy support of this kind can underpin an asset class, and can be changed.
The takeaway
Government incentives can make a sector's returns and can unmake them. Policy risk is part of infrastructure investing.
Sources
This is a retrospective about a past event, provided for general information. It is not investment advice, does not describe RockLake's positioning at the time, and past performance is not a guide to future performance. Read the risk warning.