IRA - PACE

Understanding the Inflation Reduction Act (IRA)

What Is the IRA?

On Aug. 16, 2022, the Inflation Reduction Act of 2022 (IRA) was signed into law. This major piece of legislation is designed to reduce the deficit, improve healthcare, boost American manufacturing, better conserve national parks, and tackle climate change by helping American residents and businesses transition to clean, renewable energy. Much of the climate-related funding provided comes in the form of tax credits, financing, and rebates for business and individuals. The Act includes multiple programs designed to assist owners, renters, and landlords of single- and multi-family homes and buildings. Some energy savings programs, such as tax credits, are available for improvements made starting in 2023 and others, such as state specific incentive programs, will be further developed during 2023. The IRA also establishes grant programs to governments and other entities. Here we focus on aspects of the IRA that relate to clean energy.

Why Is It Important? The IRA is designed to:

- Save Lives by funding efforts to monitor and reduce air pollution which is responsible for increased asthma rates and other chronic ailments

- Reduce the Impacts of Climate Change by providing incentives for energy efficiency and clean energy technologies as well as funding for coastal resiliency projects

- Revitalize American Manufacturing by requiring that some technologies be manufactured or assembled in North America in order to qualify for the associated incentives

- Create Jobs by funding training of a clean energy workforce

- Create Energy Equity by getting energy efficiency and resiliency funding to environmental justice communities

Federal and State Energy Incentives for Individuals

Getting Started with Home Energy Efficiency Upgrades

Plan your home energy efficiency upgrades using Go Electric! Rewiring America’s Guide to the IRA and the PACE Home Energy Checklist
Schedule a Home Energy Solutions (HES) assessment through EnergizeCT (877-WISE USE) or your municipal utility
For a quick overview of the High Energy Efficiency Home Rebate, review Rewire America’s HEEHRA Info Sheet
Use the Rewire America IRA Calculator to determine the amount of incentive money for which you may qualify
Review the Residential Energy Tax Credits Changes for 2023 and discuss potential tax credits with your accountant

Resources for Municipal Energy Groups

The Inflation Reduction Act provides a variety of funding opportunities for local energy projects. Below are some helpful resources for community leaders. Coordination with regional Councils of Government and relevant state agencies is encouraged.

INFLATION REDUCTION ACT GUIDEBOOK – Download the official government IRA guidebook

Climate Action and the Inflation Reduction Act: A Guide for Local Government Leaders – download this handbook from the “download” link in the article

USDN Inflation Reduction Act Miniguide – a “cheat sheet” to the IRA (regularly updated)

Energy Opportunities for Municipalities in the IRA – IRA info provided by UCONN CIRCA with a contact for more info

White House Toolkit: Federal Resources for Addressing School Infrastructure Needs – provides links to school clean energy funding available through various federal agencies

Additional funding for energy-projects is also be available through various Bipartisan Infrastructure Law (BIL) programs, including public EV charging stations, complete streets planning and implementation, and more.

WHITE HOUSE – IRA FACT SHEETS

FACT SHEET: Inflation Reduction Act Advances Environmental Justice: https://www.whitehouse.gov/briefing-room/statements-releases/2022/08/17/fact-sheet-inflation-reduction-act-advances-environmental-justice/

STATE FACT SHEETS: How the Inflation Reduction Act Lowers Energy Costs, Creates Jobs, and Tackles Climate Change Across America, CONNECTICUT: https://www.whitehouse.gov/wp-content/uploads/2022/08/Connecticut.pdf

FACT SHEET: The Inflation Reduction Act Supports Workers and Families: https://www.whitehouse.gov/briefing-room/statements-releases/2022/08/19/fact-sheet-the-inflation-reduction-act-supports-workers-and-families/

FACT SHEET: How the Inflation Reduction Act Helps Asian American, Native Hawaiian, and Pacific Islander Communities: https://www.whitehouse.gov/briefing-room/statements-releases/2022/08/19/fact-sheet-how-the-inflation-reduction-act-helps-asian-american-native-hawaiian-and-pacific-islander-communities/

FACT SHEET: How the Inflation Reduction Act Helps Tribal Communities: https://www.whitehouse.gov/briefing-room/statements-releases/2022/08/18/fact-sheet-how-the-inflation-reduction-act-helps-tribal-communities/

STATE FACT SHEETS: How the Inflation Reduction Act Lowers Health Care Costs Across America, CONNECTICUT: https://www.whitehouse.gov/wp-content/uploads/2022/08/Connecticut-Health-Care.pdf

FACT SHEET: How the Inflation Reduction Act Helps Rural Communities: https://www.whitehouse.gov/briefing-room/statements-releases/2022/08/17/fact-sheet-how-the-inflation-reduction-act-helps-rural-communities/

FACT SHEET: How the Inflation Reduction Act Builds a Better Future for Young Americans: https://www.whitehouse.gov/briefing-room/statements-releases/2022/08/16/fact-sheet-how-the-inflation-reduction-act-builds-a-better-future-for-young-americans/

FACT SHEET: How the Inflation Reduction Act Helps Black Communities: https://www.whitehouse.gov/briefing-room/statements-releases/2022/08/16/fact-sheet-how-the-inflation-reduction-act-helps-black-communities/

FACT SHEET: How the Inflation Reduction Act Helps Latino Communities: https://www.whitehouse.gov/briefing-room/statements-releases/2022/08/16/fact-sheet-how-the-inflation-reduction-act-helps-latino-communities/

BY THE NUMBERS: The Inflation Reduction Act: https://www.whitehouse.gov/briefing-room/statements-releases/2022/08/15/by-the-numbers-the-inflation-reduction-act/

To view additional fact sheets as they are added, visit The White House Briefing Room.