A PDQ summary of Inflation Reduction Act’s clean energy provisions

IMEG Director of Sustainability, Adam McMillen, joins this 14-minute episode to provide a summary of the clean energy and climate provisions included in the Inflation Reduction Act, or IRA. “At a high level, the act has really opened the door for taking advantage of these incentives while also trying to stimulate economic activity,” he says. One of the biggest aspects of the act is that, in addition to offering these provisions to the private sector, the IRA offers a “direct pay” incentive to non-profits—entities that could not take advantage of previous renewable energy technology tax credits due to their lack of tax liability. “Essentially it is a grant, and this is a huge step forward, for sure,” says Adam, who also has written about the IRA on the IMEG blog. To avoid wading through the act’s hundreds of pages, he also has created a simple table that lists the credits, the technologies/building types they apply to, and the incentive levels. While not included in his table, several other provisions can benefit homeowners. “For example, there's a 50 percent credit tax credit toward a heat pump unit for your house,” he says. Everyone interested in taking advantage of the provisions should expect more clarity and guidance once the act is more fully developed in early 2023. “Everyone is saying we should know a whole lot more by January, so you should start doing your planning now, but don't pull the trigger until you know more.”