The U.S. Inflation Reduction Act (the act or law) is proving consequential in the likelihood it will turbocharge renewables development and the broader goal of a net-zero future. The act's subsidies and incentives could shift production to the U.S. for tax reasons, emphasizing the EU’s competitiveness concerns, as it was already under pressure from energy price differentials triggered by the Russia-Ukraine war. Certain segments in the power sector, autos, midstream utilities, agribusiness, and health care may experience positive credit impacts from improved cash flows and reduced development and technology costs for renewables and carbon capture.