GOVERNMENTS

THE IRA EXPANDS OPPORTUNITIES FOR GOVERNMENT ENTITIES, INCLUDING STATE AGENCIES, UNIVERSITIES, PUBLIC SCHOOLS AND LOCAL GOVERNMENT, TO TAKE ADVANTAGE OF COST-SAVING TAX CREDITS TO GENERATE AND STORE CLEAN ENERGY. THE IIJA WILL ALSO PROVIDE GRANT FUNDING TO TARGET SPECIFIC PRIORITIES AT THE LOCAL LEVEL.

GOVERNMENTS

THE IRA EXPANDS OPPORTUNITIES FOR GOVERNMENT ENTITIES, INCLUDING STATE AGENCIES, UNIVERSITIES, PUBLIC SCHOOLS AND LOCAL GOVERNMENT, TO TAKE ADVANTAGE OF COST-SAVING TAX CREDITS TO GENERATE AND STORE CLEAN ENERGY. THE IIJA WILL ALSO PROVIDE GRANT FUNDING TO TARGET SPECIFIC PRIORITIES AT THE LOCAL LEVEL.

Available Programs & Grants

Grants & Financial assistance

Environmental and Climate Justice Block Grants

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.
Key Dates
Funds Available
Responsible Agency
Additional Information

Neighborhood Access and Equity Grants

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%.
Key Dates
Funds Available
Responsible Agency
Additional Information

Grants for Energy Efficiency Contractor Training

Grants for the training of contractors to carry out energy efficiency upgrades, including those in the residential energy efficiency incentives. The funds may be used to reduce the cost of training contractor employees, to provide testing and certification of contractors, and to partner with a non-profit to develop and implement a training program.
Key Dates
Funds Available
Responsible Agency
Additional Details

Greenhouse Gas Reduction Fund

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.
Key Dates
Funds Available
Responsible Agency
Additional Information

Renewable Energy

Investment Tax Credit for renewable generation (Before 2025)

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.  
Key Dates
Funds Available
Responsible Agency
Additional Information

Production Tax Credit for renewable generation (Before 2025)

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.
Key Dates
Funds Available
Responsible Agency
Additional Information

Emissions-based Investment Tax Credit (2025 and after)

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). 
Key Dates
Funds Available
Responsible Agency
Additional Information

Emissions-based Production Tax Credit (2025 and after)

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).
Key Dates
Funds Available
Responsible Agency
Additional Information

Bonus credits for investment tax credits and production tax credits

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.
Key Dates
Responsible Agency
Additional Information

Tools & Resources

Direct Payment Available in 2023

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.
IRS Guidance, Elective Pay and Transferability

Investment Tax Credits and Production Tax Credits

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:
ITC & PTC TABLES

Iowa Coal Communities Overview

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:
COAL COMMUNITIES OVERVIEW
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Disclaimer: Nothing in this summary should be interpreted as tax or legal advice.