New Report from the Alliance for a Sustainable Future
The Inflation Reduction Act of 2022 is the nation’s largest ever investment in climate and energy, authorizing approximately $370 billion in spending in federal funding and tax credits. The landmark legislation, for the first time, provides tax-exempt entities, including local governments, the opportunity to receive the monetary benefit of tax credits directly from the federal government.
The ability to directly take advantage of tax credits changes the way that cities can approach climate change mitigation and resilience projects and will make more carbon reduction and resilience strategies cost effective.
To help mayors understand how to structure, locate, scale, and finance transformative projects to meet their community needs and climate goals leveraging theses new tax credit opportunities, we’re excited to release the latest report as part of our Alliance for Sustainable Future: Cities Advancing Climate Action — Unlocking the Potential of the Inflation Reduction Act.
The analysis in this publication demonstrates how direct pay tax credits could be utilized to help fund climate and resilience projects. We show that these tax credits could shave tens of millions off the cost of a campus microgrid project, reduce the overall cost of creating a carbon-free, resilient power system for a wastewater treatment plant, and accelerate the payback period of a municipal fleet transition by one to two years.