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.
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.
Inflation Reduction Act: Key Funding Opportunities for Cities
5 Winning Strategies for Leveraging BIL and IRA Funds for Climate-Friendly Infrastructure Projects
5 Winning Strategies for Cities to Access and Leverage Inflation Reduction Act Resources
Key External Resources
EPA – Resources and Technical Assistance
Bloomberg Cities – Federal Assistance e311 Events & Webinars
Accelerator for America – IIJA Federal Investment Guide for Local Leaders
C40 – Climate action and the Inflation Reduction Act: A guide for local government leaders
FEMA – BRIC Non-Financial Direct Technical Assistance
Brookings – Breaking down the Infrastructure Investment and Jobs Act
IRS – Clean Energy Tax Incentives Table
AECOM – Cities Advancing Climate Action: Unlocking the Potential of the Inflation Reduction Act
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.