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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

The other major funding source in addition to the IRA is the Bipartisan Infrastructure Law (BIL). Funding includes programs for public EV charging stations, complete streets planning and implementation, and more.

Federal and State Energy Incentives for Individuals

Getting Started with Home Energy Efficiency Upgrades

  1. Plan your home energy efficiency upgrades using Go Electric! Rewiring America’s Guide to the IRA  and the PACE Home Energy Checklist
  2. Schedule a Home Energy Solutions (HES) assessment through EnergizeCT (877-WISE USE) or your municipal utility
  3. For a quick overview of the High Energy Efficiency Home Rebate, review Rewire America’s HEEHRA Info Sheet
  4. Use the Rewire America IRA Calculator to determine the amount of incentive money for which you may qualify
  5. 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.

The programs established by the Bipartisan Infrastructure Law provide a variety of infrastructure-related funding opportunities for local governments. Some of these are administered through the state while others (namely Safe Streets and the competitive EV charging stations program) are direct grants.

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

DOE Clean Energy Infrastructure Program and Funding Announcements – lists programs and deadlines for Department of Energy programs. Note that opportunities are also available through the EPA and other federal agencies. For other opportunities, visit Grants.gov

Helpful Resources for Bipartisan Infrastructure Law – Information sheet with links to useful resources

Northeast Energy Efficiency Partnerships (NEEP) Bil Fact Sheet – Chart showing available energy funding, eligibility and timelines

Local Funding Opportunities Through the BIL – Webinar explaining state administration of BIL programs and projects


Issues related to conservation, water consumption, agriculture, and resiliency can all impact energy consumption.  Some of the grants that communities may wish to apply for in these areas, include:

DEEP’s Clean Water Fund, USDA’s Natural Resources Conservation Service programs (EQIP, AMA, CSP, CIG, and ACEP), and NWFW Long Island Sound Futures Fund.