In this webinar, presented live on October 5, 2023, we learned more the Inflation Reduction Act and how to serve as an Ambassador and feel empowered to spread the word in your community.
Summary:
The Inflation Reduction Act represents the largest investment to address climate change in United States history. Peter Lindstrom from the Clean Energy Resource Teams will present new tax credits and rebates for energy efficiency and renewable energy enabled by the IRA.- What is an IRA Ambassador?
- Anyone who can help share information about the opportunities and resources being provided by the IRA.
- Ambassadors have access to the IRA Ambassador Toolkit with: recorded presentations, scripts, handouts, slide decks, and email updates.
- 466 Ambassadors from across all of Minnesota (and even some in other states) have joined since the program's launch in May 2023!
- Alan Anderson is just one of the IRA Ambassadors. Read more about Northfield man works to protect his community's tomorrow.
- What is the Inflation Reduction Act?
- The IRA includes a range of funds to drive supply and demand:
- Energy: clean energy incentives, manufacturing, individual incentives, clean fuels/ vehicles
- Health Care
- Climate: conservation/ rural development/ forestry, transportation and infrastructure, air pollution, climate
- What do residents need to know?
- Energy Efficiency Home Improvement Credit - AVAILABLE NOW!
- Maximum annual cap: $3,200
- Up to 30% tax credit; max amount listed on technology:
- Home energy audit: up to $150
- Attic & wall insulation: up to $1,200
- Heating system - Heat Pumps: $2,000
- Windows: $600
- Doors: $250/door, up to $500
- Water Heaters: $600 or $2,000 for a heat pump water heater
- TIP: You can also get a credit every year - so you can stage your projects to maximize your benefits!
- Home Owners Managing Energy Savings (HOMES) Rebates - COMING SOON!
- $4.3 billion available through 2031
- Starting in 2024
- For single-family homeowners and multi-family building owners
- Rebates for energy efficiency with a whole-house approach
- Based on energy savings:
- $2,000 for 20% energy savings
- $4,000 for 35% energy savings
- Doubled for LMI households
- High-Efficiency Electric Home Rebate (HEEHR) Program - COMING SOON!
- $4.5 billion available through 2031
- Starting in 2024
- Rebates for:
- Electric load service center upgrades: $4,000
- Electric stove/ cooktop/ range/ oven: $840
- Electric wiring: $2,500
- Heat pump clothes dryer: $840
- Heat pump heating/cooling: $8,000
- Heat pump water heaters: $1,750
- Insulation and air sealing: $1,600
- TIP: You can combine these incentives with utility rebates for additional savings!
- Residential Clean Energy Tax Credit - AVAILABLE NOW!
- 30% federal tax credit for solar and standalone storage
- New and Used EV Incentives - AVAILABLE NOW!
- Income qualified:
- Single, making under $150,000
- Marries, making under $300,000
- Conditions:
- Must be assembled in North America
- Must meet battery sourcing requirements
- Must comply with pricing requirements:
- Less than $80,000 for SUV, pickup trucks, vans
- Less than $55,000 for other vehicles
- What do businesses need to know?
- Commercial Solar Incentives - AVAILABLE NOW!
- 30% tax credit for:
- projects under 1MW
- projects over 1MW if they meet the prevailing wage and apprenticeship requirements
- includes standalone energy storage assets!
- PLUS stack IRA adders:
- 10% for "domestic content"
- 10% for "energy communities"
- 20% for projects financially benefiting low-income or tribal communities
- or 10% for projects located in low income or tribal communities
- Rural Energy for America Program (REAP) - AVAILABLE NOW!
- An additional $2 billion for grants and loans for rural businesses and agricultural producers adding renewable energy and energy efficiency upgrades
- Allows grants to cover 50% (up from 25%) of project costs
- 179D: Energy Efficient Commercial Buildings Deduction - AVAILABLE NOW!
- Incentives increased and expanded to non-profits
- What do city, tribal, and school governments need to know?
- Direct Pay - AVAILABLE NOW!
- Allows tax-exempt entities to take advantage of new tax incentives for solar, energy storage, geothermal, combined heat & power, and electric vehicles
- Steps:
- ID your project
- Complete your project
- Determine when your tax return is due
- Complete pre-filing registration with the IRS
- File tax returns (Form 990-T)
- Receive your money
View the workshop recording:
View the slides and additional materials:
Additional resources:
- Clean Energy Resource Teams
- Peter Lindstrom - plindstr@umn.edu; 651/324.4831
- CERTS Inflation Reduction Act page shares what you need to know and resources for residents, businesses, communities, etc.
- ReWiring America Savings Calculator
- Drive Electric Minnesota
- MN Air Source Heat Pump Collaborative
Resources for city and tribal governments:
- GreenStep Federal $ resource page shares current and coming funding opportunities and resources.
- Climate action and the Inflation Reduction Act: A guide for local government leaders (Climate Mayors and C40)
- Funding for Tribes in the Inflation Reduction Act (The White House)
- Inflation Reduction Act Miniguide (Urban Sustainability Directors Network)
- The Inflation Reduction Act and Cities - City Climate Corner podcast
- How Cities Can Make the Most of IRA Dollars — Local Energy Rules podcast
Need help with applications?
- Check out the League of Minnesota Cities Grant Navigator.
- Identify potential Federal Funding Sources for Municipal Sustainability and Climate Action using the National League of Cities tool.
- The Federal Funding for the Midwest spreadsheet is a crowdsourced list - feel free to add info on grants you're tracking or your org if you're available to support applicants. BE MINDFUL OF FORMATTING PLEASE.
- The Investing in America: State Directed Technical Assistance Resources (White House, 2023) share a list of state and local resources to help communities access IIJA and IRA funding.
- The Local Infrastructure Hub empowers local leaders to access federal infrastructure dollars with a Grant Search, learning opportunities, and technical assistance.
- Reach out to your regional development commission/organization if located within one.
- MN Council of Nonprofits grant writing/seeking courses are open to the public (filter using "Fundraising & Grantseeking").
- Connecting Rural Communities with Historic Federal Clean Energy Investments (ACEEE and Great Plains Institute)
- Federal Funding Opportunities for Local Decarbonization (American Cities Climate Challenge)
Best Practice Actions related to this topic:
- 1.3 Invest in larger energy efficiency projects through performance contracting or other funding or through smaller retro-commissioning/retrofit projects in city-owned/school buildings.
- 1.7 Install for one or more city-owned/school buildings one of the following efficiency measures...
- 2.1 Create or participate in a marketing/outreach/incentive program to promote/achieve residential energy/water use reduction and energy efficiency.
- 2.4 Describe energy/water efficiency outcomes and other green building practices at businesses and not-for-profit organizations located within/nearby the city.
- 13.3 Phase-in operational changes, equipment changes including electric vehicles, and no-idling practices for city or local transit fleets.
- 24.4 Public Education for Action: Conduct or support a broad sustainability education and action campaign, building on existing city & community relationships, networks & events
- 23.3 Decrease air emissions from vehicle idling, business trucking, and pollutants/noise from stationary engines/back-up generators.
- 25.2 Create or participate in a marketing/outreach program to connect businesses with assistance providers, including utilities, who provide personalized energy, waste or sustainability audits and assistance.
- 26.2 Promote resident/business purchases and/or generation of clean energy
- 26.3 Promote financing and incentive programs, such as PACE, for clean energy
- 26.5 Install a public sector/municipally-owned renewable energy technology, such as solar electric (PV), wind, biomass, solar hot water/air, or micro-hydro.
- 26.6 Report installed private sector-owned renewable energy/energy efficient generation capacity...
- 29.3 Increase social connectedness through engagement, capacity building, public investment, and opportunities for economically vulnerable residents to improve their economic prosperity and resilience to climate change.
- 29.8 Improve local energy resilience by minimizing fuel poverty, installing distributed renewable energy systems, and developing microgrids that can improve energy system resiliency.
Register for upcoming GreenStep Cities and Tribal Nations workshops here. You do not need to be a GreenStep community to attend.
Visit the GreenStep Cities and Tribal Nations program website at www.mngreenstep.org.
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