Solar and Storage - Inflation Reduction Act Funding
The Inflation Reduction Act (IRA) has expanded funding sources for investments in manufacturing, installation, and production of clean energy technologies, such as solar and energy storage. This includes new tax provisions for clean energy projects and the expansion of existing grant and loan programs to help fill funding gaps for local governments and other tax-exempt entities.
The resources below outline the overarching changes introduced by the IRA, including expanded funding opportunities and elective pay, which allows tax-exempt entities to receive payment for the full value of clean energy tax credits.
- Inflation Reduction Act Guide for Solar and Storage Projects [PDF]: Detailed information on new and expanded funding opportunities (e.g., elective pay, tax credits, grants, and loans) available to local government and tax-exempt entities.
- Summary Document - Inflation Reduction Act Guide for Solar and Storage Projects [PDF]: A summary of the information on new and expanded funding opportunities available to local government and tax-exempt entities.
- Solar Tax Credit Assessment Tool [XLSX]: This tool is designed help local governments and other tax-exempt entities choose between the IRA’s Investment Tax Credit and the Production Tax Credit for eligible projects.
Supplementary Guidance for Solar and Storage Projects Under the IRA
The following table contains a list of supplementary guidance released by the IRS with respect to the Inflation Reduction Act. Any additional guidance from the IRS will be added as it’s released.
|December 28, 2023
|Additional guidance released on domestic content exemptions for projects beginning construction prior to January 1, 2025 and a request to provide comments for forthcoming proposed regulations on phaseouts for elective payment and domestic content exemptions. Access the IRS notice here .
|December 22, 2023
|Release of free pre-filing registration tool for elective payments and a corresponding user guide. Recommendation to submit pre-filing registration at least 120 days prior to filing the tax return to claiming elective pay. Access the user guide here .