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By Jason Aster, managing director, KBA Lease Services Inflation hit 9.1 percent in June, the fastest pace of escalation in more than 40 years as measured by the Consumer Price Index (CPI), and hasn’t retreated much since then. And while businesses are factoring soaring prices into many decisions, they should make sure to keep a close eye on their leases. Most leases contain additional rent provisions designed to protect landlords from inflationary increases in operating costs over time. Accordingly, increases in operating costs will generally be passed on to tenants over the course of their lease terms.  However, sharing the burden of inflationary increases should be fair to both tenants and landlords. During lease negotiations, tenants should try to protect their interests by pushing back on certain expense increases via a negotiated limit on how high costs can rise in a given year. Controllable or Not? A typical lease requires tenants to pay for certain operating expenses, many of which are affected by inflation.  For some of them, such as taxes, insurance and utilities, there is not much landlords can do to control these costs, which are determined by municipalities, insurance companies and utility providers. Accordingly, both landlords and tenants …

By Angela Adolph, Esq., of Kean Miller LLP For traditional manufacturers, the Inflation Reduction Act of 2022 (IRA) offers a mixed bag of carrots and sticks to support its green energy goals.  Signed by President Biden on Aug. 16, 2022, the bill includes numerous tax credits and other incentives promoting clean energy investment. One of the IRA’s stated purposes is to incentivize and revitalize domestic manufacturing, and many of its tax credits and incentives are focused on clean energy manufacturing.  The IRA directs some specific tax outcomes, like tax credits for manufacturing green components. Other outcomes may be consequential or indirect, like increased local tax revenues due to higher wages or an expanded property tax base.  First, the Carrots One of the most significant benefits of the IRA is the expansion of the Advanced Energy Project Tax Credit. This provision credits up to 30 percent of the investment in property used in a “qualifying advanced energy project” that is certified by the Department of Energy, and that is placed in service within two years from certification.  The IRA expands the definition of a qualifying advanced energy project to include initiatives at manufacturing facilities that reduce their greenhouse gas emissions by …