INFLATION REDUCTION ACT: Infrastructure Implementation Resources

• Inflation Reduction Act of 2022 full text
• Inflation Reduction Act of 2022: Provisions Related to Climate Change, Congressional Research Service, October 3, 2022
• Offshore Wind Provisions in the Inflation Reduction Act, Congressional Research Service, September 29, 2022
• Inflation Reduction Act of 2022: Incentives for Clean Transportation, Congressional Research Service, September 6, 2022
• Electricity Transmission Provisions in the Inflation Reduction Act of 2022, Congressional Research Service, August 23, 2022
• Inflation Reduction Act of 2022: U.S. Environmental Protection Agency and Selected Other Environmental Provisions, Congressional Research Service, August 18, 2022
• Inflation Reduction Act: Agricultural Conservation and Credit, Renewable Energy and Forestry, Congressional Research Service, August 10, 2022
• Inflation Reduction Act: Agricultural Conservation, Renewable Energy, and Forestry, Congressional Research Service, August 3, 2022

• On August 29, 2024, the Administration announced two new actions to accelerate federal permitting and deliver projects more quickly. First the Bureau of Land Management announced a roadmap to support expanded solar energy production by making renewable energy siting and permitting on America’s public lands more efficient. This action will help expedite reviews of solar projects by steering them to areas with high solar potential and low wildlife and land conflicts, and ease burdens on solar developers. The Bureau of Land Management will make over 31 million acres of public lands across eleven western states available for solar development, helping to deliver clean power to millions of homes. Second, the EPA announced the conditional approval of a new rule which will allow for new offsets to create clean air credits in Maricopa County. Companies with vehicle fleets can now generate credits by replacing or retrofitting diesel-burning vehicles with electric vehicles. Manufacturers or other new emitters can then purchase those credits to balance out their future emissions. For more information, you can find the White House Fact Sheet here.  
• On June 6, 2023, the White House launched Invest.gov, a new website showing the public and private sector investment President Biden’s “Investing in America” agenda is bringing to states and territories. It provides an interactive map of infrastructure projects across the U.S. which are funded by the bipartisan Infrastructure Investment and Jobs Act, as well as private sector investments supported by the bipartisan Infrastructure Investment and Jobs Act, bipartisan CHIPS and Science Act, Inflation Reduction Act and American Rescue Plan Act. This also provides summaries of the impact in each state and territory. The website will be updated regularly to reflect recent investments, projects and announcements. 
• Clean Energy for All website
• Inflation Reduction Act Guidebook, v.1, December 2022 – provides an overview of the clean energy, climate mitigation and resilience, agriculture, and conservation-related programs in the Inflation Reduction Act  
• White House Clean Energy Updates
• By the Numbers: The Inflation Reduction Act

The U.S. Department of Agriculture (USDA) is responsible for administering over $43 billion in IRA funding. Major programs include investments in affordable and clean energy for rural communities, investments in biofuels, and investments in nature-based solutions and climate smart agriculture through the Environmental Quality Incentives Program (EQIP).

• USDA Inflation Reduction Act Funding for Rural Development webpage
• USDA Rural Energy for America Program (REAP) Solicitation of Applications

While IRA funds will pass through numerous federal agencies, the U.S. Treasury Department and the Internal Revenue Service have been tasked with administering more than $250 billion in tax credits. The Treasury Department is also tasked with administering several of the key revenue portions of the IRA, including changes to the corporate minimum tax and IRS tax enforcement funding.

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On October 24, the Department of Treasury and Internal Revenue Service issued Revenue Procedure 2024-31 and proposed regulations to provide guidance for the IRA’s Energy Efficient Home Improvement Credit. The revenue procedure provides procedures and requirements that a manufacturer of specified property must follow to be treated as a qualified manufacturer (QM). Soon manufacturers will be able to use IRS Energy Credits Online Portal (IRS ECO) to register with the IRS. You can learn more in the press release here.  

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On October 24, 2024, the U.S. Department of Treasury and IRS released final rules for the Advanced Manufacturing Production Credit (Section 45X). The Advanced Manufacturing Production Credit helps to level the playing field for U.S. companies to onshore production of critical clean energy technologies like solar and wind components, batteries and energy storage, and critical minerals. In particular, the final rules will accelerate the buildout of domestic critical mineral supply chains by allowing taxpayers to include materials costs and extraction costs in production costs for applicable critical minerals and electrode active materials, provided certain conditions are met. This change, based on feedback from stakeholders, will enable further investment in responsible U.S. critical minerals extraction and processing and strengthen U.S. energy security and clean energy supply chains. For more information, you can find the final rule here and press release here.

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On September 17, 2024, the U.S. Department of the Treasury and Internal Revenue Service (IRS) issued a Notice of Proposed Rulemaking (NPRM) and additional guidance on the IRA’s Alternative Fuel Vehicle Refueling Property Credit (section 30C). The 30C credit, which is eligible for direct pay, provides a tax credit for installing qualified alternative fuel vehicle refueling property, such as chargers and hydrogen refueling property. Individuals, businesses, tax-exempt entities, and governments can claim credits of up to 30% for items placed into service in eligible census tracts (low-income and nonurban communities). The NPRM proposes to implement the 30C credit by defining credit-eligible 30C property, a single item of property, and energy storage property along with updating the Prevailing Wage and Apprenticeship (PWA) requirements for enhanced credits. Public comments on the NPRM will be accepted for 60 days until November 18, 2024. For more information, please see the Press Release, NPRM and Details for Tax-Exempt Entities.  

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In August 2024, the Treasury Department and the Internal Revenue Service (IRS) released a Notice of Proposed Rulemaking (NPRM) on the Clean Electricity Low-Income Communities Bonus Credit Amount Program (48E(h)) established by the Inflation Reduction Act. The Program promotes cost-saving clean energy investments in low-income communities, on Indian land, as part of affordable housing developments, and benefitting low-income households. Comments on the proposed rules will be due by October 3, 2024. For more information, you can find the press release here and the NPRM here.  

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On June 18, 2024, U.S. Department of Treasury and the Internal Revenue Service (IRS) released final rules on Prevailing Wage and Registered Apprenticeship Requirements in the Inflation Reduction Act. The final rules from Treasury – which were developed in close partnership with the Department of Labor (DOL) – provide clarity and certainty on prevailing wage and apprenticeship requirements. In general, if taxpayers pay prevailing wages to laborers and mechanics and hire registered apprentices for projects supported by most of the Inflation Reduction Act’s clean energy tax incentives, then taxpayers can claim an increased credit equal to five times the base incentive. This includes projects utilizing the investment and production tax credits that help finance utility-scale wind, solar, and battery storage projects, as well as for credits for carbon capture, utilization, and storage and clean hydrogen projects. For more information, you can find the press release here and final rule here.  

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On June 7, 2024, the U.S. Department of the Treasury and Internal Revenue Service issued Notice 2024-48 that publishes information taxpayers may use to determine whether they meet certain requirements under the Statistical Area Category or the Coal Closure Category in Notice 2023-29 for purposes of qualifying for the Energy Community Bonus Credit. These lists are provided in Appendix 1 and Appendix 2 of the notice. Appendix 1 pertains to the Statistical Area Category and Appendix 2 pertains to the Coal Closure Category. Learn more in the press release here. 

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In June 2024, the U.S. Department of Treasury and Internal Revenue Service issued a notice providing guidance on the registration requirements for the IRA’s Clean Fuel Production Credit determined under § 45Z of the Internal Revenue Code. A taxpayer must have a signed registration letter from the Internal Revenue Service (IRS) dated on or before January 1, 2025, for the taxpayer to be eligible to claim the § 45Z credit for production starting January 1, 2025. Thus, taxpayers should apply for registration as soon as possible to give the IRS sufficient time to process registration applications.  The Department of the Treasury (Treasury Department) and the IRS intend to issue additional guidance on other aspects of the § 45Z credit at a later date. You can find the notice here.  

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On May 29 2024, the U.S. Department of Treasury and Internal Revenue Service released proposed guidance on the Clean Electricity Production Credit and Clean Electricity Investment Credit under the IRA. These two programs are for projects placed into service after December 31, 2024, and will supersede the existing Production Tax Credit (s. 45) and Investment Tax Credit (s. 48). These new Clean Electricity credits provide incentives for the first time to any clean energy facility that achieves net zero greenhouse gas emissions. Treasury will accept comments for 60 days following publication in the Federal Register (August 2 2024) and a public hearing will be heard on August 12 and 13, 2024. For more information, you can find the Proposed Guidance here and press release here.  

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On May 28, 2024, the U.S. Department of the Treasury opened a 30-day initial application window for its Low-Income Communities Bonus Credit Program, which provides a 10- or 20- percentage point increase to the investment tax credit for qualified solar or wind energy facilities under five megawatts. Under the program, a 10-percentage point increase is available to eligible solar and wind facilities that are installed in low-income communities or on Indian land and a 20-percentage point credit increase is available to eligible solar and wind facilities that are part of a qualified low-income residential building or a qualified low-income economic benefit project. After the initial application deadline of June 27, any additional applications will be evaluated on a rolling basis. Resources: Press Release; Program Website.  

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On May 16, 2024, the U.S. Department of Treasury and Internal Revenue Service released additional guidance on the Inflation Reduction Act’s Domestic Content Bonus. The domestic content bonus applies to facilities and projects built using the required amounts of domestically produced steel, iron, and manufactured products. The revised guidance aims to provide taxpayers needed clarity and certainty to facilitate uptake of the bonus provision and unlock investments in American-made clean energy. Specifically, to assist taxpayers in determining whether the minimum percentage of the costs of the manufactured products and components of manufactured products is met, this notice creates a new elective safe harbor that gives clean energy developers the option of relying on DOE-provided default cost percentages for an exhaustive set of manufactured products and their components. This safe harbor is in lieu of obtaining direct cost information from suppliers. The guidance also amends last May’s Notice to add more safe harbor classifications, including the addition of hydropower technologies, as well as to provide clarity for rooftop solar. For more information, please see the press release and additional guidance. 

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On May 3, 2024, the U.S. Department of the Treasury and the Internal Revenue Service (IRS) released final guidance for the up to $7500 30D Clean Vehicle Tax Credit under the Inflation Reduction Act (IRA). This rule states that EVs containing battery components manufactured or assembled by a FEOC will be ineligible to receive the tax credit starting in 2024. Starting in 2025, EVs with batteries containing critical minerals extracted, processed, or recycled by a FEOC will be ineligible to receive the tax credit. This deadline extends to 2027 for difficult to trace minerals like graphite. See the DOE press release here, and the IRS press release here. 

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On May 3, 2024, the U.S. Department of Treasury released information on the 150 cities (also known as “Comeback Communities”) it will be engaging with directly throughout the spring and summer to provide education and outreach related to Inflation Reduction Act (IRA) tax credits under elective pay (also known as direct pay). See the full list of cities here, Secretary Yellen’s comments here, and the full featured story here. 

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On April 25, 2024, the U.S. Department of the Treasury and the Internal Revenue Service (IRS) released final rules on transferability within the Inflation Reduction Act (IRA), a provision that enables tax-exempt entities including states and territories to take advantage of clean energy tax credits. The final rule allows eligible taxpayers to transfer all or a portion of any of 11 clean energy credits to a third-party unrelated taxpayer in exchange for tax-free immediate funds, so that entities can take advantage of tax incentives even if they don’t have sufficient tax liability to fully utilize the credits themselves. The rules are intended to simplify how clean energy projects are financed by expanding the pool of companies and entities that can take advantage of the clean energy tax credits under the law, while also incentivizing more private-sector capital to flow to projects. Transferability complements the IRA’s direct pay provision, for which Treasury and the IRS finalized guidance in March. Learn more in the press release here and you can find the final rule here.  

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On March 22, 2024, the U.S. Department of the Treasury and the Internal Revenue Service issued new guidance that expands eligibility for the Energy Community Bonus Credit under the IRA. This guidance will still need to be finalized with the initial proposed guidance on the bonus issued last year. You can find the guidance here.  

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On March 5, 2024, the U.S. Department of the Treasury and the Internal Revenue Service (IRS) released Final Rules on Direct Pay (otherwise known as “elective pay”) for tax credits under the Inflation Reduction Act (IRA). Direct pay is a process by which states, territories, non-profit organizations, local governments, and other tax-exempt entities can file for reimbursement for portions of qualified projects through 12 different IRA tax credits. The final rule provides certainty around the required pre-filing registration process and the definition of an applicable entity. It also makes important changes that would allow states and territories to sync their taxable year with the calendar year rather than their fiscal year. Given that IRA tax credits are available for projects with taxable years that begin after December 31, 2022, this change would allow projects to qualify for direct pay that were put into service at the beginning of 2023 by entities with fiscal years beginning later than January 1. In addition to the final rules, Treasury issued a separate Notice of Proposed Rulemaking (NPRM) intended to provide further clarity and a more accessible pathway for applicable entities that co-own renewable energy projects to elect out of partnership tax status and therefore access elective pay. Treasury will accept comments on the NPRM until May 10. For more information, please see the Press Release; Final Rule; and NPRM. 

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The U.S. Department of the Treasury and the Internal Revenue Service (IRS) recently released guidance on eligible census tracts for the Inflation Reduction Act’s Qualified Alternative Fuel Vehicle Refueling Property Credit (30C). The 30C tax credit provides up to 30% off the cost of electric vehicle chargers and alternative fuel vehicle refueling property to individuals and businesses in low-income and non-urban areas. Based on the new guidance, the Administration estimates that the credit will be available to approximately two-thirds of Americans. This announcement does not provide full regulations on 30C, which are still forthcoming. Resources: Press Release; Notice; Mapping Tool; Program Website; IRS FAQ; DOE FAQ 

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On December 28, 2023, the U.S. Department of the Treasury and the Internal Revenue Service (IRS) issued Notice 2024-9 that provides procedures for applicable entities – including states and territories – to claim the statutory exception to the application of the phaseouts for elective payment projects that begin construction during calendar year 2024 that fail to satisfy the domestic content requirement. The phaseouts for elective payment and the statutory exception apply to the following credits: Renewable Electricity Production Credit (IRC § 45); Clean Electricity Production Credit (IRC § 45Y); Energy Credit (IRC § 48); and Clean Electricity Investment Credit (IRC § 48E). Domestic content is generally defined as steel, iron, or manufactured products that are manufactured or produced in the United States. Generally, unless a statutory exception applies, the phaseouts for elective payment apply to projects that produce 1 or more megawatts of electricity and that fail to satisfy the domestic content requirement. Comments are due by Monday, February 26th. Please see the press release and Notice 2024-9. 

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On December 22, 2023, the U.S. Department of the Treasury (Treasury) and the Internal Revenue Service (IRS) published a Notice of Proposed Rulemaking (NPRM) on the Inflation Reduction Act’s Clean Hydrogen Production Credit (45V). Under the 45V tax credit, hydrogen production facilities that meet prevailing wage and registered apprenticeship requirements are eligible for a credit ranging from $0.60 to $3 per kilogram of hydrogen, depending on the lifecycle emissions of the production. Emissions will be measured and scored using the 45VH2-GREET model developed by Argonne National Lab. Clean power must be sourced from the same region as the hydrogen producer and matched on an annual basis. The 45V credit cannot stack with the Carbon Capture and Sequestration Tax Credit (45Q) but can stack with the renewable energy production and zero-emission nuclear tax credits. Projects must begin construction by 2033 and can claim the credit for 10 years after the hydrogen facility goes into service. Comments are due by Monday, February 26th. For more information, please see the press release, NPRM and program website.  

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On December 22, 2023, the Internal Revenue Service (IRS) opened a new pre-filing registration tool for states and territories, along with other eligible entities, to file for direct/elective pay under the Inflation Reduction Act (IRA) and the CHIPS and Science Act. This tool is the entry point for Governors’ offices to take advantage of the tax credits under these two bills. States and territories need to complete the pre-filing registration process to receive a registration number, which then must be included in the annual return. Pre-filing registration requests can be submitted no earlier than the beginning of the tax year in which the taxpayer will earn the credit it wishes to file, and the current recommendation is to submit the pre-filing registration at least 120 days prior to when the entity plans to file its relevant tax return. For more information, please see the press release, pre-filing tool and the user guide.  

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On December 14, 2023, the U.S. Department of the Treasury and Internal Revenue Service (IRS) released proposed guidance on the section 45X Advanced Manufacturing Production Credit established by the Inflation Reduction Act (IRA). The Advanced Manufacturing Production Credit is a new tax credit for domestic manufacturing of components along the supply chain for solar modules, wind turbines, battery cells and modules, and critical minerals processing. The Notice of Proposed Rulemaking (NPRM) proposes clarifying definitions and confirms credit amounts for eligible components, and applicable critical minerals. The NPRM will be open for public comment for 60 days following publication in the Federal Register. For more information, please see the NPRM here and the press release here.  

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On November 17, 2023, the Treasury and IRS released a Notice of Proposed Rulemaking (NPRM) on the Investment Tax Credit for Energy Property, as amended by the Inflation Reduction Act (section 13102). The NPRM provides clarity around the eligibility of power conditioning and transfer equipment like subsea export cables used in offshore wind projects, as well as certain power conditioning equipment located in onshore substations. The NPRM also includes proposed rules around the eligibility of standalone battery storage for the ITC. For more information, please see the press release here and NPRM here.   

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On October 19, 2023, DOE and the Internal Revenue Service opened applications for the Low-Income Communities Bonus Credit Program under Section 48(e) of the Internal Revenue Code. This program provides a 10- or 20-percentage point tax credit boost for solar and wind projects in low-income and Tribal communities. It allows for up to 1.8 gigawatts of eligible solar and wind capacity across four categories of projects to be allocated in credits each year. Applications will be accepted for the initial application window over the next 30-days for the 2023 program year. After 30 days, applications will continue to be considered on a rolling basis and, depending on the availability of capacity, are expected to be accepted through early next year. The Treasury Department and IRS may choose to reallocate capacity between project categories in the event of oversubscription in any category, and unclaimed capacity will roll over into the 2024 program year when another base 1.8 gigawatts of capacity will be available via application. Learn more in the press release here.  

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On October 13, 2023, the U.S. Department of the Treasury and the Internal Revenue Service (IRS) released updated guidance that will allow consumers to transfer their new electric vehicle credit of up to $7,500 or their previously owned electric vehicle credit of up to $4,000 to a car dealer starting January 1, 2024. This is designed to effectively lower the vehicle’s purchase price by providing consumers with an upfront down payment on their electric vehicle at the point of sale, rather than having to wait to claim their credit on their tax return the next year. Only vehicles purchased under the consumer clean vehicle credits are eligible for this benefit. The guidance also provides proposed eligibility rules for the previously owned clean vehicle credit to give consumers more certainty regarding their ability to claim and to transfer the credit. Later this month, dealers will be able to register via IRA Energy Credits Online, a new website. This registration is a requirement for dealers to offer consumers clean energy tax credits for qualifying electrified products. Starting in January, registered dealers will be able to submit electric vehicle sales information to the IRS, confirm vehicles’ eligibility for a credit, and receive payment for transferred credits. When a buyer chooses to transfer the credit, registered dealers will reduce the purchase price of the vehicle or provide cash to the buyer. The IRS expects to issue advance payments to dealers within 72 hours. Please see the Press Release; Updated Guidance

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On September 27, 2023, the Treasury Department and Internal Revenue Service released new guidance on the energy efficiency home tax credit. The new guidance provides greater certainty and clarity to home builders planning new construction projects. You can find the new guidance here.

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In September 2023, the U.S. Department of the Treasury, the U.S. Department of Energy, and the Internal Revenue Service announced that applications for the Low-Income Communities Bonus Credit Program under Section 48(e) of the Internal Revenue Code will open at 9 a.m. EDT on October 19. This program provides a 10- or 20-percentage point tax credit boost for solar and wind projects in low-income and Tribal communities. The program was established under the Inflation Reduction Act and is designed to spur renewable energy investments in underserved communities. For more information, please see the Press Release, Program Website and Applicant Checklist.  

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On August 10, 2023, the U.S. Department of the Treasury and Internal Revenue Service (IRS) recently issued final rules and procedural guidance for the Low-Income Communities Bonus Credit program established through the Inflation Reduction Act. This program is under Section 48(e) of the Internal Revenue Code and offers up to a 20 percentage point boost to the Investment Tax Credit for qualified solar or wind facilities in low-income communities, with the goal of expanding energy facilities to these communities. The application process for this program will open in the fall, and awards will start to be made by the end of the year. The 2023 program plans to allocate 1.8 gigawatts of total capacity across four categories of solar or wind facilities with maximum output of less than five megawatts. Depending on the availability of capacity, applications for the 2023 program are expected to be accepted through early next year. For more information, please see the Press Release, Final Rules and Program Website.

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On June 13, 2023, the Treasury Department and the Internal Revenue Service issued Notices of Proposed Rule Makings (NPRM) on how to monetize tax credits under the Inflation Reduction Act (IRA), aiming to expand the reach of the law’s clean energy incentives. The proposed rule aims to provide that clarity over “direct pay” and “transferability“ — credit monetization provisions that are meant to expand which companies and entities can take advantage of the clean energy tax credits while also incentivizing more private sector capital into projects. For twelve of the clean energy tax credits in the IRA, governmental and tax-exempt entities, including state, territory, and local governments, rural electric co-ops, nonprofits, and tribes are eligible for direct pay benefits. Businesses may also utilize direct pay for the carbon capture, clean hydrogen, and advanced manufacturing tax credits. To meet the gaps left by the limited use of direct pay, the law also offers transferability, or the ability for businesses not using direct pay to transfer any of the eleven eligible tax credits to an unrelated taxpayer in exchange for cash. For more information, see the press release, elective pay NPRM, transferability NPRM, IRS FAQs, and the White House Summary. 

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On May 31, 2023, the Treasury Department and the Internal Revenue Service released updated guidance for applicants seeking to access the expanded qualifying advanced energy project credit program (Section 48C) under the Inflation Reduction Act (IRA) that targets communities that have been dependent on coal. The law extends and allocates $10 billion for the program that offers a 30 percent investment tax credit to incentivize clean energy manufacturing and recycling, industrial decarbonization, and critical materials processing, refining, and recycling. Congress required that at least $4 billion of that funding be reserved for projects in communities with closed coal mines or retired coal-fired power plants. The new guidance includes clarifications and details of the process for submitting concept papers and joint applications, as well as further information regarding energy communities’ Census tracts. Taxpayers can also access information and materials for preparing their concept papers. For more information, see the press release, Section 48C guidance.

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On May 31, 2023, Treasury and the IRS released a notice of proposed rulemaking (NPRM) for the “bonus” tax credit under the IRA that provides up to 20 percent credit for wind and solar facilities located in low-income communities or otherwise serving low-income populations. Treasury and IRS intend to release final guidance related to the 2023 program prior to applications opening later this year. See here for the NPRM. 

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On May 12, 2023, the U.S. Department of the Treasury released new guidance to incentivize the onshoring of clean energy component manufacturing. The bonus increases the production tax credit by 10% and the investment tax credit by up to ten percentage points for projects that meet domestic content requirements for iron, steel and manufactured products. For further details, please see the guidance here. 

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On April 4, 2023, the U.S. Treasury Department and Internal Revenue Service (IRS) released guidance that provides detailed information about the bonus under the Inflation Reduction Act (IRA) for clean energy projects and facilities located in communities that have driven and historically been at the forefront of energy production. Developers can receive a bonus of up to 10 percentage points on top of the Investment Tax Credit (ITC) and an increase of 10 percent for the Production Tax Credit (PTC). The energy community bonus for the ITC and PTC is available to developers for locating projects in historical energy communities, including areas with closed coal mines or coal-fired power plants. A census tract or directly adjoining census tract where a coal mine closed after 1999, or where a coal-fired electric generating unit was retired after 2009 qualifies as an energy community. The bonus is also available to areas that have significant employment or local tax revenues from fossil fuels and higher than average unemployment. To qualify for the bonus, a metropolitan statistical area or non-metropolitan statistical area must have or have recently had at least 0.17 percent direct employment, or at least 25 percent local tax revenues related to the extraction, processing, transport, or storage of coal, oil, or natural gas, as well as an unemployment rate at or above the national average unemployment rate for the previous year. For more information, see the press release or the guidance.

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On March 31, 2023 the U.S. Treasury Department and the Internal Revenue Service (IRS) released a Notice of Proposed Rulemaking (NPRM) for electric-vehicle (EV) tax credits, which are set to take effect April 18. The Biden administration’s requirements for EV tax credits will reduce the number of models eligible for incentives until tens of billions of new investments in US manufacturing by automakers and suppliers kick in. The guidance clarifies provisions of the Inflation Reduction Act (IRA), which will leave few EVs eligible for up to $7,500 credits. Most EVs do not meet new requirements that battery components or critical minerals are sourced from North America or US free trade partners. Treasury left still unclear how it will deem companies to be foreign entities of concern, which automakers will not be able to turn to for battery components and critical minerals in the years to come. The NPRM will be published in the Federal Register on April 17. For more information, see the press release and the NPRM. 

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The Treasury Department released new guidance to clarify the funding, eligible projects, and the application process for two programs under the Inflation Reduction Act (IRA). As part of one of the programs, Treasury said it anticipates about $1.6 billion will be initially reserved for projects in coal communities. Under the structure of the law, the tax credit values increase fivefold when projects meet prevailing wage and apprenticeship requirements. Projects can also get an additional credit boost by locating in low-income communities or energy communities — which the legislation defines as brownfield sites, an area dependent on the extraction, processing, transport or storage of fossil fuels, or a tract near a shuttered coal mine or coal-fired power plant. The IRS anticipate providing at least two allocation rounds under the program — the first of which will total $4 billion. Approximately $1.6 billion of that will be allocated to projects located in certain energy communities. The application process for the advanced energy project credit program will begin on May 31, while applications for the new low-income communities bonus credit program will open in two phases this year. For more information, see the press release. 

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The Treasury Department updated the vehicle classification standard used to determine the applicable Manufacturer Suggested Retail Price (MSRP) limitation for clean vehicle tax credits available under the Inflation Reduction Act (IRA). The move comes after weeks of campaigning by automakers who argued that the standard Treasury was using — which classified several popular vehicles as cars, subject to the $55,000 price cap, rather than SUVs subject to the $80,000 price cap —was confusing for consumers and could cause them to lose out on the tax credit. Under the change, the standard would rely on EPA’s fuel economy labeling standard, rather than the EPA CAFE standard. The previous classification of some small SUVs as cars would make some vehicles ineligible for the tax credit since they cost more than $55,000. For more information, find the press release here. 

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• Press Release: Treasury and IRS Releases Additional Information on Clean Vehicle Provisions of the Inflation Reduction Act, December 29, 2022
• Press Release: Treasury Announces Information Timeline for Inflation Reduction Act Tax Implementation, December 19, 2022
• Press Release: Treasury Announces Guidance on Inflation Reduction Act’s Strong Labor Protections, November 29, 2022
• Fact Sheet: Four Ways the Inflation Reduction Act’s Tax Incentives Will Support Building an Equitable Clean Energy Economy
• Inflation Reduction Act of 2022 IRS landing page
• IRS Fact Sheet on Energy Efficiency Home Improvements and Residential Clean Energy Property Credits, December 22, 2022
• Treasury and IRS Issue Guidance on new Sustainable Aviation Fuel Credit, December 19, 2022
• Treasury, IRS Issue Prevailing Wage and Apprenticeship Initial Guidance Under Section 45(b)(6)(B)(ii) and Other Substantially Similar Provisions, November 30, 2022
• FAQ: Prevailing Wage and the Inflation Reduction Act
• FAQ: Apprenticeship and the Inflation Reduction Act

The U.S. Department of Energy (DOE) is responsible for administering IRA loan authorities to provide direct loans and loan guarantees across three key programs: Energy Infrastructure Reinvestment, Innovative Clean Energy, and Advanced Technology Vehicle Manufacturing. In total the Department of Energy’s Loan Program Office will administer $367 billion in loan authorities. DOE is also committed to accelerating the buildout of long-distance transmission through $2 billion in support for transmission facility financing and $760 in grants to support the siting of interstate transmission projects. 

• On October 30, 2024, DOE released new resources to support households and home energy efficiency contractors understand how to qualify for IRA’s Energy Efficiency Home Improvement Credit. The resources include a Tax Credit Product Lookup Tool to help determine if new equipment is eligible for tax credits; information that walks contractors through key elements of home insulation products that can lower utility bills and qualify for tax credits; and a training module on how contractors can leverage a range of home energy efficiency incentives. You can learn more in the press release here.  

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• On September 13, 2024, DOE’s Office of Manufacturing and Energy Supply Chains launched the Manufacturing Capital Connector (MCC). The MCC is a platform that connects companies applying to DOE-administered clean energy manufacturing programs to a range of capital providers seeking high-quality projects. The initial cohort of participating financial institutions includes Appian Capital Advisory, Ara Partners, BBVA, Blackstone Credit & Insurance, Carlyle, CarVal, GoldenTree Asset Management, HASI, I Squared Capital, Keyframe Capital, Macquarie Group, and Spring Lane Capital. Entities applying to a DOE-administered clean energy manufacturing programs such as the 48C program and interested in utilizing MCC platform to find capital for your project can email capitalconnector@hq.doe.gov. For more information, you can find the press release here.

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• In August 2024, DOE’s Office of State and Community Energy Programs (SCEP) announced amendments to the second round of competitive funding under the IRA’s Assistance for the Adoption of the Latest and Zero Building Energy Codes program. This competitive Funding Opportunity Announcement provides funding to States and units of local government that have the authority to adopt building codes to assist with the adoption and implementation of the latest model building energy codes, zero energy codes, and certain innovative code equivalents, which may include certain building performance standards. This FOA complements, but does not duplicate, the previously-released Administrative and Legal Requirements Document (ALRD) Formula Funding opportunity released under IRA Section 50131. This FOA is designed to fund additional qualifying jurisdictions and to fund distinctly different and unique activities. Under this round of funding, a concept paper is not required for submittal and full applications are due September 13, 2024. For more information, you can find the FOA here.
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• On September 19, 2023, DOE released program guidance and opened applications for $400 million in formula funding to states and territories for adopting and implementing energy efficient and resilient building energy codes. The Administrative and Legal Requirements Document (ALRD) provides federal guidance in adopting and implementing two categories of building energy codes. A total of $240 million will be available to adopt and implement the latest building energy code, the 2021 International Energy Conservation Code (IECC) for residential buildings and the ANSI/ASHRAE/IES Standard 90.1–2019 for commercial buildings, or other codes that achieve equivalent or greater energy savings. An additional $160 million will be available to adopt and implement the zero energy provisions in the 2021 IECC, or other codes with equivalent or greater energy savings. Eligible states and territories must submit a Letter of Intent by November 21, 2023, with full applications due September 30, 2025. See the program website here and the ALRD here.  

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• On July 27, 2023, the U.S. Department of Energy (DOE) announced it is accepting applications for state and territory implementation of the two Home Energy Rebate Programs created by the Inflation Reduction Act (section 50101 and 50122). These programs will provide funding to states and territories to lower energy costs and increase efficiency in American homes by making home energy upgrades more affordable, while ensuring all communities have access to affordable, reliable, and clean electricity. The published Administrative and Legal Requirements Document (ALRD) offers full federal guidance and instructions for states and territories to apply for their allocation of the Home Energy Rebates programs. Rebates will be available to consumers only after states and territories apply for and receive their funds from the DOE and launch their state/territory rebate program. Please see here the Press Release, State/Territory Allocations and Programs Guidance.  

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• The U.S. Department of Energy Loan Program Office has issued updated guidance on Title 17 Clean Energy Financing. This program can finance projects in the United States that support clean energy deployment and energy infrastructure reinvestment to reduce greenhouse gas emissions and air pollution. While the program was established under the Energy Policy Act of 2005, the IIJA and IRA expanded the scope of Title 17 to include certain state-supported projects and projects that reinvest in legacy energy infrastructure, and it leverages additional loan authority and funding available for projects involving innovative energy technologies. For more information see the overview here.

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• On May 8, 2023, the U.S. Department of Energy’s (DOE) Grid Deployment Office (GDO) issued a Notice of Intent (NOI) and Request for Information (RFI) to inform the designation of National Interest Electric Transmission Corridors (NIETCs). NIETCs are geographic areas where electricity limitations, congestion, or capacity constraints are adversely affecting electricity consumers and communities. Designation of a NIETC unlocks critical federal investment and regulatory and permitting tools to spur urgent transmission investments needed in these geographic areas to improve reliability and resilience and reduce consumer costs. In the NOI, DOE provides further information on its anticipated approach to designating NIETCs. The RFI seeks stakeholder feedback to improve the NIETC designation process to more accurately pinpoint areas experiencing the greatest transmission need and with the greatest potential for immediate transmission deployment. A NIETC designation can unlock federal financing tools, specifically public-private partnerships through the $2.5 billion Transmission Facilitation Program under the Infrastructure Investment and Jobs Act and the $2 billion Transmission Facility Financing Loan Program under the Inflation Reduction Act. For more information, see the press release. 
• On April 25, the U.S. Department of Energy (DOE) launched the Energy Savings Hub — an online one-stop shop for American families and consumers to access the savings tools to help cut energy costs. The new website—Energy.gov/Save—puts the Inflation Reduction Act’s clean energy tax credits and forthcoming rebates front and center, helping people take control of their energy costs and have cleaner and more efficient options as a consumer—whether they are looking to purchase an electric vehicle, update an appliance, or make their home safer and more comfortable. For more information, see the press release and the website.

• Clean Energy Tax Credits for Consumers
• DOE Loan Program Office, Inflation Reduction Act of 2022
• Fact Sheet: Inflation Reduction Act Supporting the Future of DOE Science

The U.S. Environmental Protection Agency (EPA) hosts a wide variety of IRA programs, representing over $41 billion in IRA funding. These programs include the $27 billion Greenhouse Gas Reduction Fund, the Methane Emissions Reduction Program, investments in protecting vulnerable communities from air pollution, and investments in permitting and improving pollution monitoring.

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On September 20, 2023, EPA announced $4.6 billion for the implementation phase of its Climate Pollution Reduction Grants (CPRG) program. This follows $250 million already made available to fund the development of state and territory climate action plans. This program will be administered under two competitive Notice of Funding Opportunities (NOFOs): one general competition and one specifically for Tribes and territories. The general competition expects to fund roughly 30 to 115 grants ranging between $2 million and $500 million. States and territories should apply by April 1, 2024, and those interested can attend a webinar on October 3 at 3 p.m. EDT (registration link not yet available). The competition for Tribes and territories expects to award approximately 25 to 100 grants ranging from $1 million to $25 million each. Territories should apply by May 1, 2024, and those interested can attend a webinar on September 27 at 2 p.m. EDT or October 5 at 1 p.m. EDT (registration links not yet available). For more information, please see the Press Release; General Competition NOFO; Tribes and Territories Competition NOFO; Program Website.  

On June 28, 2023, EPA launched a $7 billion grant competition, the Solar for All competition, which is intended to fund residential solar in low-income communities. Funding for this initiative comes from the Inflation Reduction Act’s Greenhouse Gas Reduction Fund (GGRF) and is a Justice40 covered program. This initiative seeks to advance energy reliability and affordability for low-income communities by investing in solar energy, an energy source that has not gained much traction in low-income communities. The application deadline is September 26, 2023. Eligible applicants to Solar for All include states, territories, Tribal governments, municipalities, and eligible nonprofit recipients. Coalitions, led by an eligible lead applicant, are also eligible to apply to this competition. For more information, see the NOFO or EPA’s GGRF webpage.

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On June 20, 2023 EPA issued a final rule under the Renewable Fuel Standard (RFS) program that establishes the biofuel volume requirements for 2023 to 2025. The Set Rule establishes the biofuel volume requirements and associated percentage standards for cellulosic biofuel, biomass-based diesel (BBD), advanced biofuel, and total renewable fuel for 2023–2025. It also completes EPA’s response to a court remand of the 2016 annual rule by establishing a supplemental volume requirement of 250 million gallons of renewable fuel for 2023. In addition to setting the volume requirements, EPA is finalizing several regulatory changes intended to expand the use of biogas under the program while, at the same time, putting in place provisions that will improve the operation of the RFS program. 

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On April 20, 2023, EPA released new details about the design of the $27 billion Greenhouse Gas Reduction Fund (GGRF), a first-of-its-kind, national-scale competitive grant program created by the Inflation Reduction Act. The program is intended to leverage public investment with private capital and finance clean energy projects that reduce pollution and energy costs, increase energy security, and create good-paying jobs, especially in low-income and disadvantaged communities. EPA’s framework creates three buckets of financing for emissions-reducing investments, such as expanding zero-emissions distributed generation, decarbonizing existing buildings through retrofits and curbing transportation pollution by electrifying vehicle fleets and installing public vehicle chargers. Each of those areas must meet President Joe Biden’s goal to ensure at least 40 percent of clean energy and climate benefits flow to disadvantaged communities. The largest portion of EPA’s new funding — $14 billion — would go to two or three national nonprofits with sophistication and scale to deploy tens of thousands of transactions. Another $6 billion is slotted specifically for low-income and disadvantaged communities. EPA will award that funding to between two and seven “hub non-profits” that will then partner with and sub-award community lenders, while also helping provide technical assistance. The last $7 billion would flow to a “Solar for All” effort for low-income and disadvantaged areas. Up to 60 grants are available for states, tribes, municipalities, and nonprofits to improve access to solar power or reduce the carbon intensity of the local power grid. EPA will take public comment on the framework until May 12. For more information, see the press release or the GGRF framework.

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• EPA’s Inflation Reduction Act landing page
• Inflation Reduction Act, Green Power Markets webpage
• Inflation Reduction Act Overview, December 2022

The U.S. Department of Transportation (USDOT) is responsible for administering IRA incentives to support sustainable aviation fuels and has been tasked with administering the $3.2bn Neighborhood Access and Equity Grant Program, which provides funding to states and localities to improve transportation access, clean up environmental harms and support planning and capacity building support. Additionally, the Federal Highway Administration will implement the $2bn Low-Carbon Transportation Materials Program for federally funded highway projects and has been provided $100m to support efficient environmental reviews.

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• On March 12, 2024, USDOT’s Federal Highway Administration (FHWA) launched its Low Carbon Transportation Materials Program, which aims at lowering air pollution through reimbursement and incentive funding for low carbon construction materials and products used in transportation. The program makes $2 billion available from the IRA to support state departments of transportation, tribes, MPOs and other agencies buy low carbon materials. FHWA is using a hybrid approach to implement the program. First, FHWA is making $1.2 billion available to states, the District of Columbia and Puerto Rico through a Request for Applications (RFA) to fund activities and projects that reduce pollution, including carbon emissions, through the use of low-embodied carbon materials and products. Second, later this year FHWA will make available $800 million to target non-state applicants. Responses to the current Request for Applications for states and PR are due June 10, 2024. For more information, please see the RFA and program website.  
• Section 40007 of the IRA of 2022 Fast Program Briefing

The U.S. Department of Interior (DOI) is responsible for administering several new programs, including the $150m Tribal Electrification Program, nature-based climate resiliency measures, and programs to support communities from extreme weather events. The IRA provides $150m to DOI to support effective and efficient environmental reviews.

• On May 31, the Department of Interior announced plans to deploy $161 million in ecosystem restoration on the nation’s public lands from the Inflation Reduction Act. This work, which will be led by the Bureau of Land Management, will focus on 21 “Restoration Landscapes” across 11 western states, including Alaska, Arizona, California, Colorado, Idaho, Montana, New Mexico, Nevada. Oregon, Utah and Wyoming. For further details, please see the announcement here.  

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• DOI’s bureau of Indian Affairs IRA webpage
• Media Release – Drought Mitigation Funding in IRA, October 12, 2022
• Media release – Leasing provisions in IRA, October 6, 2022

The U.S. Department of Housing and Urban Development (HUD) is responsible for several IRA programs to improve energy and water efficiency, air quality, lower emissions and enhance resiliency of HUD-assisted multifamily properties.

• On September 21, the U.S. Department of Housing and Urban Development (HUD) announced its Funding Navigator, an interactive tool that allows users to browse and sort funding opportunities available under the Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act (IIJA). This Funding Navigator will help program participants maximize the utilization of IRA and IIJA resources for carbon reduction and climate resilience efforts for HUD-assisted communities. For more information, please see the press release and HUD’s Funding Navigator.  

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• On May 31, 2023, HUD launched the Green and Resilient Retrofit Program (GRRP), which provides funding for grants and loans to help owners of multifamily-assisted properties make energy efficiency, water efficiency, and climate resilience improvements to their buildings. Eligible properties include those participating in the Section 9 Project-Based Rental Assistance, Section 202 Supportive Housing for Low Income Elderly and Section 811 Supportive Housing for Low-Income Persons with Disabilities Program. There are three funding levels and applications are accepted on a rolling basis and assessed through early 2024. See press release here.

The U.S. Department of Commerce’s National Oceanic and Atmospheric Administration (NOAA) has been allocated $2.6bn towards its coastal resilience and communities’ program, as well as funding for facilities that support the National Marine Sanctuary System. NOAA has also been provided additional funding through the IRA for weather and climate research, hurricane forecasting aircraft and for improving computer capacity and research for weather, oceans and climate.

Statement from NOAA Administrator on Signing of Inflation Reduction Act

The U.S. Department of Labor (DOL) plays an ancillary role in implementing employment requirements in the IRA which are administered by Treasury and the IRS. Under the IRA, taxpayers may receive increased tax benefits by meeting prevailing wage and apprenticeship requirements which are established and supported by DOL.

• Treasury, IRS Issue Prevailing Wage and Apprenticeship Initial Guidance Under Section 45(b)(6)(B)(ii) and Other Substantially Similar Provisions, November 30, 2022
• FAQ: Prevailing Wage and the Inflation Reduction Act
• FAQ: Apprenticeship and the Inflation Reduction Act