30% technology neutral investment tax credit is an emissions-based investment tax credit that is neutral and flexible between clean electricity technologies. Taxpayers choose between a PTC (45Y) and an ITC (48E).
Credits begin to be reduced after January 1, 2034 or when emission targets are achieved (i.e., the electric power sector emits 75% less carbon than 2022).
30% of project cost with no maximum.
Technology neutral production tax credit is an emissions-based production tax credit that is neutral and flexible between clean electricity technologies. Credit of 1.5 cents/kwh (inflation adjusted to 2.8 cents/kwh). Taxpayers choose between a PTC(45Y) and an ITC(48E).
Credits begin to be reduced after January 1, 2034 or when emission targets are achieved (i.e., the electric power sector emits 75% less carbon than 2022).
Credit of 1.5 cents/kwh (inflation adjusted to 2.8 cents/kwh).
Under the Inflation Reduction Act, projects qualifying for an ITC or PTC may be eligible for "adder" or bonus credits for projects meeting certain requirements. See additional details for criteria.
Bonus credits available as long as a project is eligible for an ITC or PTC.
States, schools, local governments, and non-profits can receive direct payment of investment tax credits, production tax credits and available bonuses for the technology neutral clean electricity technologies. Elective pay is only available after an applicable credit is earned and able to be claimed on the relevant annual tax return. In general, a tax credit is earned during the taxable year the applicable credit property is placed in service.
Direct pay is available through 2035 or when emission targets are achieved (i.e., the electric power sector emits 75% less carbon than 2022).
See Emissions-based Investment Tax Credit, Emissions-based production Tax Credit, and Bonus Credits.
Thousands of Thriving Communities subgrants will be distributed by the Grantmakers to support capacity building in communities affected by environmental or public health issues to eligible applicants including: Ineligible subrecipients include:
Applications for 2-year grants for Tier II and Tier III will remain open through January 31, 2025, or until all 2-year Tier II and Tier III grants have been awarded. The application deadline for 1-year Tier I and Tier II grants is April 30, 2025, or until all grants have been awarded. Grants will be awarded on a rolling basis.
Tier One will consist of grants for $150,000 for assessment, Tier Two will consist of grants for $250,000 for planning, and Tier Three will consist of grants for $350,000 for project development. In addition, $75,000 will be available for capacity-constrained community-based organizations through a noncompetitive process under Tier One.
Projects can include:
3-year grants are available for projects related to climate change and air pollution, including air pollution monitoring, extreme heat risk mitigation, resiliency and adaptation, indoor pollution reduction, and community engagement.
Funds available until September 30, 2031.
$200 million.
Grants to improve transportation access and mitigate negative safety or environmental impacts in underserved communities, for improvements to reduce air pollution and GHG emissions, manage stormwater run-off, address urban heat islands, and to monitor air quality, transportation related GHG emissions and pollution, and gaps in tree canopy coverage. Eligible Entities: (1) State, local, territory, and Tribal governments, (2) A partnership with an entity in (1) and a non-profit or university for certain activities in disadvantaged or underserved communities.
Funds available until September 30, 2026.
Provides EPA funding for grants to state, local, regional, and Tribal programs that provide financial support to low and zero carbon technologies and can act as seed capital for regional, local, state, or Tribal green banks that provide financial support for low or zero emission projects.
Funds available until September 30, 2026.
$2.8 billion to the EPA for grants and $200 million for technical assistance to eligible entities.
Grants to improve transportation access and mitigate negative safety or environmental impacts in underserved communities, for improvements to reduce air pollution and GHG emissions, manage stormwater run-off, address urban heat islands, and to monitor air quality, transportation related GHG emissions and pollution, and gaps in tree canopy coverage. Federal cost share of a project up to 80%, or in a disadvantaged or underserved community may be up to 100%.
Funds available until September 30, 2024, except administrative cost grants until September 30, 2031.
$11.97 billion competitive grants for financial assistance and technical assistance, $7 billion for zero emission technology in low income and disadvantaged communities, $8 billion for financial assistance and technical assistance in low income and disadvantaged communities, and $30 million for administrative costs.
The Clean Water SRF funds wastewater treatment, sewer rehabilitation, and stormwater quality improvements, as well as non-point source projects.
Applications due quarterly.
$149,312,750 from 2022-26, $73,163,248 (49%) available as forgivable loans.
The Drinking Water SRF funds water treatment plants or improvements to existing facilities, water line extensions to existing unserved properties, water storage facilities, wells, and source water protection efforts.
Applications due quarterly.
$174,295,000 from 2022-26; $85,404,550 (49%) available as forgivable loans.
This program is designed to address discharges of PFAS and other emerging contaminants through wastewater and potentially nonpoint sources of pollution. Emerging Contaminants refer to substances and microorganisms, including manufactured or naturally occurring physical, chemical, biological, radiological, or nuclear materials, which are known or anticipated in the environment, that may pose newly identified or re-emerging risks to human health, aquatic life, or the environment. These substances, microorganisms, or materials can include many different types of natural or manufactured chemicals and substances – such as those in some compounds of personal care products, pharmaceuticals, industrial chemicals, pesticides, and microplastics.
Intended Use Plan for this funding is currently under development.
$12,777,000 for 2023-26, $12,777,000 (100%) available as forgivable loans.
This program is designed to reduce people’s exposure to PFAS and other emerging contaminants through their drinking water. The DWSRF Program will consider any project that is either preventative in nature or addresses a known PFAS or emerging contaminant issue. Any contaminant listed in any of EPA’s Contaminant Candidate Lists 1-5 is considered eligible.
Intended Use Plan for this funding is currently under development.
$57,917,000 from 2022-26, $57,917,000 (100%) available as forgivable loans.
This funding is available for projects or activities that are otherwise DWSRF eligible and are a lead service line replacement project or associated activity directly connected to the identification, planning, design, and replacement of lead service lines. Any project funded under this appropriation involving the replacement of a lead service line must replace the entire lead service line, not just a portion, unless a portion has already been replaced or is concurrently being replaced with another funding source.
Intended Use Plan for this funding is currently under development.
$162,189,000 from 2022-26, $72, 472,610 (49%) available as forgivable loans.
This program funds the construction of authorized water resources projects to increase aquatic ecosystem restoration, including $1 billion for multipurpose projects or programs that include aquatic ecosystem restoration as a purpose.
No application deadlines. FY22 Application is currently open.
$1.9 billion total:
Provides technical and financial assistance for the planning, design, and construction of projects that address resource concerns in a watershed.
Expected Notice of Funding Opportunity for FY22 is in Q1 2023.
$500 million.
WFPO Project Criteria
Grant funding available to reduce or eliminate the risk of repetitive flood damage to buildings or structures insured by the National Flood Insurance Program. Funds may be used for projects such as Project Scoping, Technical Assistance, Community Flood Mitigation Projects, Individual Structure/Property-Level Flood Mitigation Projects, and Management Costs.
FY2022 application period is open until Jan. 27, 2023.
$3.5 billion, 0-25% match required.
This program provides credit assistance to creditworthy borrowers for: • Projects that are eligible for the Clean Water SRF, notwithstanding the public ownership clause • Projects that are eligible for the Drinking Water SRF • Enhanced energy efficiency projects at drinking water and wastewater facilities • Brackish or seawater desalination, aquifer recharge, alternative water supply, and water recycling projects • Drought prevention, reduction, or mitigation projects • Acquisition of property if it is integral to the project or will mitigate the environmental impact of a project • A combination of projects secured by a common security pledge or submitted under one application by an SRF program
LOIs accepted on an ongoing basis beginning September 6, 2022.
This funding is for technical and financial assistance to remove barriers and restore aquatic connectivity. Applicants must work with a Fish and Wildlife Conservation Office biologist to be considered for funding.
Applications open.
$38,000,000
50% typically required.
Minimum award: $100,000; Maximum award $2,000,000
States, schools, and local governments can receive direct payment of investment tax credits and production tax credits for solar, small wind, geothermal, fuel cell, microturbine, combined heat and power, waste energy recovery, energy storage technology, and biogas.
Under the IRA, owners of renewable energy projects will be able to choose between an Investment Tax Credit (ITC) or Production Tax credit (PTC). An ITC reduces the cost of installing clean technologies, while PTCs credit project owners for the production of their clean technologies. Stand-alone storage is only eligible for the ITC. For greater detail on the timelines and credit amounts, see the linked tables:
The IRA includes provisions that make communities currently or recently hosting coal plants prime areas for renewable energy development that can keep jobs in the community and replace lost tax revenues. Learn more about these opportunities and how they can benefit Iowa communities in the overview below:
Disclaimer: Nothing in this summary should be interpreted as tax or legal advice.
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