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, 2026.
$2.8 billion to the EPA for grants and $200 million for technical assistance to eligible entities.
Financial assistance including loans to Rural Electric Cooperatives to achieve the greatest reduction of greenhouse gas emissions. Funds can be used to purchase of renewable energy, renewable energy systems, zero-emission systems, and carbon capture and storage systems, to deploy such systems, or to make energy efficiency improvements to electric generation and transmission systems.
Funds available until September 30, 2031.
$9.7 billion in total funding, Maximum award is $970 million and must not exceed 25% of the total project cost.
30% investment tax credit for solar, small wind, geothermal, fuel cell, microturbine, combined heat and power, waste energy recovery, energy storage technology, and biogas constructed before January 1, 2025.
Open immediately, projects must be constructed by January 1, 2025.
30% of project cost, no maximum to be claimed.
Production tax credit of 1.5 cents/kilowatt hour (inflation adjusted to 2.6 cents / kwh) for solar, geothermal, wind, closed- and open-loop biomass, landfill gas, municipal solid waste, hydropower, and marine and hydrokinetic facilities.
Open immediately, Projects must be constructed by January 1, 2025.
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30% technology neutral investment tax credit replaces Section 48 with 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 start January 1, 2025 and 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, no maximum to be claimed.
Technology neutral production tax credit replaces Section 45 with an emissions-based production tax credit that is neutral and flexible between clean electricity technologies. Credit of 1.5 cents/kwh (inflation adjusted projected at 2.8 cents/kwh). Taxpayers choose between a PTC (45Y) and an ITC (48E).
Credits start January 1, 2025 and 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).
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Under the Inflation Reduction Act, ITC and PTC projects may be eligible for “adder” or bonus credits for projects meeting certain requirements. See additional details for criteria.
Credits available beginning January 1, 2023.
Criteria for bonus eligibility:
Starting in 2023, 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:
Disclaimer: Nothing in this summary should be interpreted as tax or legal advice.
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