Introduction to the Inflation Reduction Act

Resource Collection

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. 

    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

      IRA Guidance for Local Leaders

      Webinar Recording, Slides, and Q&A – IRA Guidance for Local Leaders (2/28/2023)
      Strategies for local leaders to unlock the full potential of IRA and move forward on their climate priorities.