Opportunities in the
Federal Inflation
Reduction Act
Inflation Reduction Act of 2022 (IRA)
$773 billion ($433 in new investments)
federal bill funding climate/energy
provisions, lowering prescription prices,
and paying down national debt.
Three priority funding buckets for CCAs:
• Increasing renewable generation ($40 billion)
• Enhancing building decarb ($9.8 billion)
• Supporting environmental justice ($33 billion)
2 Renewable Generation Tax Credits
3 Program Name Description Total $
Production Tax
Credit (PTC -
SEC. 13101)
Extends tech-specific PTC through 2024. Revives PTC for solar.
Creates tech-neutral PTC from 2025 to phaseout in 2032. 1.5 cents/kwh (prevailing wage) + 10% for domestic manufacturing, energy community, or low-income (up to 20%). Direct
pay/transferability.
$30 billion
(estimated)
Investment Tax
Credits (ITC –
SEC. 13102)
Extends tech-specific ITC through 2024 at full amount. Extends to storage, biogas, microgrid controller. Creates tech-neutral PTC from 2025 to phaseout in 2032. 30% credit (prevailing wage) + 10% for domestic manufacturing, energy community, or low-income (up to 20%). Direct pay/transferability.
$10 billion
(estimated)
Building Decarb
4 Program Name Description Total $
Home Energy Performance-Based, Whole Home
Rebates (SEC. 50121)
Award grants to State energy offices to develop/implement a HOMES rebate program for homeowners and aggregators for whole-house energy savings retrofits.
• For single-family home retrofits that achieve modeled energy savings of 20-35% = lesser of $2k or 50% project cost; >35% energy savings = $4k or 50% project.
• For multi-family home retrofits achieve modeled energy savings of 20-35% = $2k per dwelling (max $200k); >35% energy savings = $4k per dwelling (max $400k).
• For low-income single/multifamily housing, rebate rate doubles and covers up to 80% project cost. $4.3 billion
Improving Energy Efficiency
or Water Efficiency or
Climate Resilience of
Affordable Housing (SEC.
30002)
New grant and loan program funding improvements for energy or water efficiency, indoor air quality, or sustainability, implement the use of low-emission technologies, materials, or processes, including zero-emission electricity generation, energy storage, org building electrification, or address climate resilience. • $837.5M to HUD through 2028 for direct loans, modifying loans, and for grants. • $60M for HUD to implement this section including reporting, research, and evaluation. • $60M for HUD to administer contracts.
• $42.5M for eligible property energy and water benchmarking. $1 billion ($4
billion in loans)
High-Efficiency Electric
Home Rebate Program
(HEERA) (SEC. 50122)
Up to $14,000 in rebates to switch over to electric appliances—up to 50% of costs for moderate-income households and 100% for low-income households. Includes: $8,000 for a heat pump, which serves as an air conditioner in the summer and heater in the winter; $1,750 for a high-efficiency, all-electric heat pump water heater; $840 for an electric induction cooktop; $840 for a high-efficiency all-electric heat pump clothes dryer; Up to $9,100 for enabling improvements to the electric panel, wiring, and home insulation; Up to 50% of project for moderate income, up to 100% for low-income.
$4.5 billion
Nonbusiness Energy
Property Credit (SEC.
13301)
Energy efficiency and electrification tax credits for qualified energy efficiency improvements including up to $2k for heat pumps.
Environmental Justice
5 Program Name Description Total $
Greenhouse Gas Reduction Fund (Green
Bank - SEC. 60103)
Provides funding for grants to state, local, regional, and Tribal programs that provide financial support to low and zero carbon technologies (like rooftop solar, and pollution-reducing 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.
• $11.97 billion through 2024 to make grants for entities that provide financial or technical support to establish green banks. • $15 billion through 2024 to make grants for entities to provide financial and technical support and support the deployment of clean energy technologies in low-income and disadvantaged communities. $27 billion
Environmental and Climate Justice Block
Grants (SEC. 60201)
Investments for community-led projects covering a range of eligible activities, from pollution monitoring and prevention, to mitigating health risks from climate events like heat and wildfires, to climate resilience and adaptation, to reducing indoor air pollution; to increasing community engagement in public processes like rulemakings. The fund includes $200 million to provide technical assistance to communities. $3 billion
Neighborhood Access and Equity Grant
Program (SEC. 60501)
$3 billion ($1.1 billion for disadvantaged communities) for grants to improve transportation access and mitigate negative safety or environmental impacts in underserved communities.
• Grants may be used 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. $3 billion
Other
6 Program Name Description Total $
Climate Pollution Reduction Grants
(SEC. 60114)
Competitive awards to states, municipalities, tribes or air pollution agencies that support the establishment and
implementation of plans to to reduce climate pollution. This program could support states and other subnational actors in the implementation of clean electricity policies; programs driving adoption of zero-emission vehicles and buildings; deployment of EV charging infrastructure; incentives for smart-growth, housing and transit-oriented development; climate-smart agriculture and lands conservation, and more.
$5 billion
Alternative Vehicle Refueling Property
Credit (Sec. 13404)
An up to 30% tax credit for alternative refueling property including electric vehicle chargers. Starting in 2023, properties must be located in a low-income census tract or non-urban area. $100,000 limit for any single item of property and it must be placed into service before 2033.
Clean Vehicle Tax Credits (SEC.
13401)
Tax credits/point-of-sale rebates of up to $7,500 for new vehicles and $4,000 for used vehicles (depending on domestic battery and critical minerals). Commercial clean vehicle tax credits of $7,500 for light-duty and $40,000 for heavy-duty. No unit-per
manufacturer cap starting after Dec 31, 2022. Tax credit terminates by 2033. Includes both electric plug-in vehicles and fuel cell motor vehicles. Taxpayer can elect to transfer credits to eligible dealer that sold vehicle, meaning taxpayer gets credit equal to tax credit from dealer at point of sale.
$12 billion
Other Cont.
7 Program Name Description Total $
Assistance for Latest and Zero Building
Energy Code Adoption (SEC. 50131)
Grants to assist States, and units of local government to adopt building codes for: Residential buildings that meets or exceeds the 2021 International Energy Conservation Code, or achieves equivalent or greater energy savings; Commercial buildings that meets or exceeds the ANSI/ASHRAE/IES standard; for residential and commercial buildings that meets or exceeds the zero energy provisions.
$1 billion
State-based Home Energy Efficiency
Contractor Training Grants (SEC.
50123)
Funding through DOE to provide state energy offices with grants for the training of contractors on energy efficiency and electrification upgrades, including those in the above residential energy efficiency rebates and tax credits.
$200 million