Best stock picks for companies poised to benefit from the Individual Retirement Accounts: Bank of America

President Joe Biden signed the Inflation Reduction Act into law on August 16, 2022. Since the passage of this historic climate bill, 270 new clean energy projects have been announced, with a total investment of $130 billion, according to a tally from Bank of America. The companies involved in building clean technology and their suppliers are expected to be the big winners as the energy infrastructure transitions from fossil fuels to decarbonized sources.

The Inflation Reduction Act provides production and investment tax credits for electricity generation and capital investments in renewable projects. This includes companies that manufacture parts used in renewable power construction, such as wind blades or semiconductors for solar panels. It also encompasses businesses related to the operation and management of these renewable power systems.

Another aspect of the IRA is its focus on batteries and energy storage. As the demand for renewable energy grows, there is a need for efficient and reliable energy storage solutions. The act includes provisions to support companies involved in the manufacturing of batteries and energy storage systems.

Improvements to the electric grid are also a crucial component of the IRA. The act includes $5 billion in loans for building and improving transmission grid infrastructure, which is necessary for the continued deployment of clean energy. Companies involved in utility grid operations or the creation of software and parts for operating the electric grid will benefit from these provisions.

Clean fuels and biofuels are also supported by the IRA. The act includes measures to promote the production and use of clean fuels, which are essential for reducing carbon emissions. Companies involved in the production and distribution of clean fuels and biofuels will see opportunities for growth and investment.

The IRA also includes provisions to boost the adoption of clean vehicles. It provides tax credits for electric vehicles and supports the production of batteries and raw materials used in electric vehicles. Companies involved in the manufacturing of electric vehicles and their component parts, as well as charging infrastructure, will benefit from these provisions.

Materials, metals, and mining companies are also expected to benefit from the IRA. Electric vehicles and renewable energy generation require specific raw materials, and the act includes provisions to support their production. Companies involved in the production of steel, which is used in wind and solar production, will also see opportunities for growth.

Industrial companies with building efficiency solutions are targeted by the IRA. The act includes provisions to improve the energy efficiency of residential and commercial buildings, and companies providing energy efficiency equipment and technology will benefit from these measures.

The IRA also includes provisions to support agriculture and forestry. It allocates $19.5 billion for agriculture conservation programs and $5 billion for forest management and restoration. Companies with programs designed to help farmers sequester carbon in the soil or provide forest management technology will see opportunities for growth and investment.

Overall, the inflation reduction act of 2022 is expected to have a significant impact on the clean energy sector and related industries. With the support provided by the act, companies involved in renewable energy, batteries and energy storage, electric vehicles, materials and mining, building efficiency, and agriculture and forestry will have opportunities for growth and investment.

Original Story at www.cnbc.com – 2023-07-19 19:49:16