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: Nonprofit organizations, community-based and grassroots nonprofit organizations .
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, 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.
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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