Inflation Reduction Act
Inflation Reduction Act
The Inflation Reduction Act (IRA) was signed into law on August 16, 2022. The bill is 273 pages long and is referred to as HR 5376. Here is a link to the full bill. It doesn't have a Table of Contents, is hard to read because it continually refers to other bills and is divided up by the various committees it allocates funds too, creating a complex maze of funding categories which appear to overlap, or have gaps, and is difficult to follow. So, the simplest way to understand the IRA is to read the various summaries created by multiple sources. Here are the best links we have found so far:
Solar Energy Industries Association
Holland & Knight LLP
RENEW Wisconsin
Solar Power World
Energy Impact Summary Chart
The White House
U.S. Dept. of Energy
Summary from Congress.gov. with access to full text, amendments, etc.
CBR's list of the key components of the Inflation Reduction Act that will affect our local area:
In case you want to dive deeper, here is a CBR simplified Table of Contents of the IRA which may help you skip to the parts of interest to you:
Title 1 – Committee on Finance (pg.1)
Subtitle A – Deficit Reduction
Part 1 Corporate Tax Reform
Pg 11 Part 2 – Excise Tax on Repurchase of Corporate Stock
Pg 14 Part 3 – Funding the Internal Revenue Service
Subtitle B (pg. 16) – Prescription Drug Pricing Reform
Subtitle C (pg. 88) – Affordable Care Act Subsidies
Subtitle D (pg. 89) – Energy Security
Part 1 (pg. 89)– Clean Electricity and Reducing Carbon Emissions
Of interest: Pg 104 Sec 13103 ITC increase for low-income
Part 2 (pg. 114) - Clean Fuels
Part 3 (pg. 124)– Clean Energy & Efficiency Incentives for Individuals
Part 4 (pg. 137) - Clean Vehicles
Part 5 (pg. 152) – Investment in Clean Energy Manufacturing and Energy Security
Part 6 (pg. 164) – Superfund
Part 7 (pg. 165) – Incentives for Clean Electricity and Clean Transportation
Part 8 (pg. 186) – Credit Monetization and Appropriations
Part 9 (pg. 196) - Other Provisions
Title II Committee on Agriculture, Nutrition, and Forestry (pg. 196)
Subtitle B (pg. 198) – Conservation
Subtitle C (pg. 201) – Rural Development and Agricultural Credit
REAP (pg. 202)
USDA (pg. 203) Assistance for rural Electric Cooperatives
Subtitle D (pg. 206) – Forestry
Title III – Committee on Banking, Housing and Urban Affairs (pg. 210)
Sec. 30002 Improving energy efficiency or water efficiency or climate resilience of affordable housing
Title IV – Committee on Commerce, Science, and Transportation (pg. 211)
Title V – Committee on Energy and Natural Resources (pg. 216)
Subtitle A – Energy
Part 2 (pg. 216) – Residential Efficiency and Electrification Rebates
Sec 50122 (pg. 219) High-Efficiency Electric Home Rebate Program
Part 3 (pg. 224) – Building Efficiency and Resilience
Part 4 (pg. 225) – DOE Loan & Grant Programs
Part 5 (pg. 229) – Electric Transmission
Part 6 (pg. 232) – Industrial
Part 7 (pg. 233) - Other Energy Matters
Subtitle B (pg. 235) – Natural Resources
Part 2 (pg. 235) – Public Lands
Part 3 (pg. 236) – Drought Response and Preparedness
Part 5 (pg. 237) – Offshore Wind
Subtitle C (pg. 245) – Environmental Reviews
Title VI – Committee on Environment and Public Works (pg. 246)
Subtitle A – Air Pollution
Subtitle B (pg. 261) – Hazardous Materials
Subtitle C (pg. 262) – U.S Fish and Wildlife Service
Subtitle D (pg. 262) – Council on Environmental Quality
Subtitle E (pg. 263) – Transportation and Infrastructure
Title VII – Committee on Homeland Security and Governmental Affairs (pg. 269)
Title VIII – Committee on Indian Affairs (pg. 271)
Solar Energy Industries Association
Holland & Knight LLP
RENEW Wisconsin
Solar Power World
Energy Impact Summary Chart
The White House
U.S. Dept. of Energy
Summary from Congress.gov. with access to full text, amendments, etc.
CBR's list of the key components of the Inflation Reduction Act that will affect our local area:
- Extends the Federal tax credit for direct-owned solar PV to 2032 and raises it to 30%. Applies retroactively to all projects installed in 2022.
- Offers a Direct Pay option for nonprofits and municipalities, who otherwise couldn’t use the tax credit, also set at 30% and begins in 2023
- EV charging infrastructure will now also be eligible for the 30% tax credit starting in 2023
- The USDA Rural Electrification of America Program (REAP) for farms and rural businesses will raise its grant program from 25% to 50%
- Battery storage projects, either couple with Solar PV or stand-alone are now eligible for the 30% tax credit
- Residential Clean Energy Property will get a 30% tax credit starting in 2023. An annual cap applies and includes things like heat pumps, heat pump hot water heaters, biomass stoves and boilers and electrical upgrades needed to install clean energy projects. Income levels determine eligibility.
- Ground-sourced heat pumps or geothermal also qualify for the 30% tax credit and Direct Pay for nonprofits and municipalities.
- Programs will be administered through the WI Office of Energy Innovation for improvements in home energy efficiency and electrification. Programs will be income-contingent and come with rebate percentages and caps. Both tax credits and upfront discounts will be available. Details forthcoming.
- Extension, expansion, and changes to electric vehicle tax credits, including a new credit for purchasing used EVs
In case you want to dive deeper, here is a CBR simplified Table of Contents of the IRA which may help you skip to the parts of interest to you:
Title 1 – Committee on Finance (pg.1)
Subtitle A – Deficit Reduction
Part 1 Corporate Tax Reform
Pg 11 Part 2 – Excise Tax on Repurchase of Corporate Stock
Pg 14 Part 3 – Funding the Internal Revenue Service
Subtitle B (pg. 16) – Prescription Drug Pricing Reform
Subtitle C (pg. 88) – Affordable Care Act Subsidies
Subtitle D (pg. 89) – Energy Security
Part 1 (pg. 89)– Clean Electricity and Reducing Carbon Emissions
Of interest: Pg 104 Sec 13103 ITC increase for low-income
Part 2 (pg. 114) - Clean Fuels
Part 3 (pg. 124)– Clean Energy & Efficiency Incentives for Individuals
Part 4 (pg. 137) - Clean Vehicles
Part 5 (pg. 152) – Investment in Clean Energy Manufacturing and Energy Security
Part 6 (pg. 164) – Superfund
Part 7 (pg. 165) – Incentives for Clean Electricity and Clean Transportation
Part 8 (pg. 186) – Credit Monetization and Appropriations
Part 9 (pg. 196) - Other Provisions
Title II Committee on Agriculture, Nutrition, and Forestry (pg. 196)
Subtitle B (pg. 198) – Conservation
Subtitle C (pg. 201) – Rural Development and Agricultural Credit
REAP (pg. 202)
USDA (pg. 203) Assistance for rural Electric Cooperatives
Subtitle D (pg. 206) – Forestry
Title III – Committee on Banking, Housing and Urban Affairs (pg. 210)
Sec. 30002 Improving energy efficiency or water efficiency or climate resilience of affordable housing
Title IV – Committee on Commerce, Science, and Transportation (pg. 211)
Title V – Committee on Energy and Natural Resources (pg. 216)
Subtitle A – Energy
Part 2 (pg. 216) – Residential Efficiency and Electrification Rebates
Sec 50122 (pg. 219) High-Efficiency Electric Home Rebate Program
Part 3 (pg. 224) – Building Efficiency and Resilience
Part 4 (pg. 225) – DOE Loan & Grant Programs
Part 5 (pg. 229) – Electric Transmission
Part 6 (pg. 232) – Industrial
Part 7 (pg. 233) - Other Energy Matters
Subtitle B (pg. 235) – Natural Resources
Part 2 (pg. 235) – Public Lands
Part 3 (pg. 236) – Drought Response and Preparedness
Part 5 (pg. 237) – Offshore Wind
Subtitle C (pg. 245) – Environmental Reviews
Title VI – Committee on Environment and Public Works (pg. 246)
Subtitle A – Air Pollution
Subtitle B (pg. 261) – Hazardous Materials
Subtitle C (pg. 262) – U.S Fish and Wildlife Service
Subtitle D (pg. 262) – Council on Environmental Quality
Subtitle E (pg. 263) – Transportation and Infrastructure
Title VII – Committee on Homeland Security and Governmental Affairs (pg. 269)
Title VIII – Committee on Indian Affairs (pg. 271)