Introduction to the Inflation Reduction Act
President Biden signed the Inflation Reduction Act (IRA) on August 16, 2022. The IRA marks the most significant action Congress has taken on clean energy and climate change, allocating $370 billion for climate solutions and environmental justice. The IRA is unique in that it is designed to leverage billions of dollars of additional private investment through the use of tax credits and other financing incentives.
Inflation Reduction Act (IRA) Overview
While IRA was signed into law in 2022, initial program guidance was not released until 2023. The Local Infrastructure Hub has supported local governments in getting the information necessary to fully unlock and access this unique source of funding.
Blending and Braiding BIL and IRA Funding Streams for Green Infrastructure Projects
Webinar Recording – Blending and Braiding BIL and IRA Funding Streams for Green Infrastructure Projects (1/31/2023)
Integrating BIL and IRA funding streams for different types of infrastructure projects, particularly green infrastructure projects.
Key External Resources
Direct Pay Provisions
The Direct Pay provisions in the Inflation Reduction Act of 2022 (IRA) unlocked the potential for cities, nonprofit organizations and other tax-exempt entities to utilize clean energy tax incentives. Cities and nonprofits have been historically ineligible for federal tax benefits because they do not owe federal taxes. Direct Pay (also called “Elective Pay”) has changed this dynamic by providing cash payments equal to the value of the tax benefit