NextGen closely monitors government actions that affect our clients. The recently-passed Inflation Reduction Act of 2022 presents many opportunities for you and your business to apply for tax credits, grants, and funding. Below is a list of some of the new federally-funded programs that go into effect December 31, 2022.
Extension of Renewable Electricity Production Tax Credit (Section 45)
New Clean Electricity Investment Tax Credit (48E)
This newly established, tech-neutral ITC (48E) replaces the above Energy ITC once it phases out at the end of 2024. 48E is an emissions-based incentive that is neutral and flexible between clean electricity technologies.
Carbon Capture and Sequestration Tax Credit (45Q)13,14,15,16,17,18
Enhances the tax credit for carbon capture and direct air capture (DAC).
Grants for Energy Efficiency Contractor Training
Environmental and Climate Justice Block Grants
Neighborhood Access and Equity Grants
Energy Credit for Solar and Wind in Low-Income Communities
Rural Energy for America Program (REAP)
Provides financial assistance for adoption of clean energy technologies in rural communities.
Greenhouse Gas Reduction Fund
Provides EPA funding for grants to state, local, regional, and Tribal programs that provide financial support to low and zero carbon technologies and can act as seed capital for regional, local, state, or Tribal green banks that provide financial support for low or zero emission projects.
Environmental Quality Incentives Program (EQIP)
Regional Conservation Partnership Program (RCPP)
Conservation Technical Assistance (CTA)
The Environmental Protection Agency's Water Infrastructure Finance and Innovation Act (WIFIA) program and the State Infrastructure Financing Authority WIFIA (SWIFIA) program have allocated significant new funding resources for the purpose "revitalizing water systems" and creating new jobs.
EPA Announces $6.5 Billion in New Funding Available for Water Infrastructure Projects
June 13, 2022
The notices of funding availability include $5.5 billion for the WIFIA program and an additional $1 billion for the SWIFIA program. This round of funding will prioritize funding in four areas:
Credit for Residential Clean Energy (25D)10
Credit for Energy Efficiency Home Improvements (25C)11
Home Energy Performance-Based Whole House Rebates (HOMES)24
High-Efficiency Electric Home Rebate Program