# How Operational Finance Helps Power Businesses Unlock IRA Benefits

> A CEO's Guide

Source: https://valuexpa.com/publication/ira-benefits-power-businesses-operational-finance
Publisher: ValueXPA (https://valuexpa.com)

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## Executive summary

45X, 45Q, 45Y, and 48). Success hinges on adept operational financial management, setting up robust and automated finance processes, establishing stringent financial controls that adhere to policies and compliances. Business leaders have the opportunity to leverage Operational Finance as a key instrument to maximize these incentives. How should Original Equipment Manufacturers (OEMs) navigate the impact of IRA incentives? OEMs face complex accounting for diverse product lines and international operations, further complicated by IRA incentives like Sec. 45X for clean energy component production. Strategic decision-making and financial reporting depend on accurate record-keeping of production costs, R&D expenditures, and tax credit distribution.

## Key findings

- Example: Oversighting production costs and research and development expenses across several projects and jurisdictions is crucial for an OEM manufacturing wind turbine component
- 45X, the finance team must ensure these credits are accurately reflected in the financial statements, affecting both tax liabilities and asset valuations
- OEMs, especially in wind turbine manufacturing, must adeptly handle international operations for optimal tax benefits under Section 45X Accurate tracking of production costs, R&D expenses, and tax credit distribution is crucial
- How should Services Companies navigate the impact of IRA incentives?

## Who this is for

This report is for CFOs and finance leaders, CEOs and founders, manufacturing executives, and power and utility CFOs evaluating IRA incentives.

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ValueXPA runs a fixed-scope Margin Drift Diagnostic that validates every service vendor invoice against contract terms, for $100M+ US industrial manufacturers and distributors. Two to four weeks. The client retains 100% of recoveries. https://valuexpa.com/contact-us