WLGCC Celebrates the Inflation Reduction Act’s One Year Anniversary
Press Release - August 15, 2023
This week, the Inflation Reduction Act (IRA) celebrates its one year anniversary. The IRA represents a historic investment in clean energy and climate solutions for Wisconsin’s local communities, with far-reaching and long-lasting impacts on jobs and the economy, the transportation sector, the built environment including our homes and businesses, and the power sector.
Members of the Wisconsin Local Government Climate Coalition (wlgcc.org) represent over one-third of the state’s residents. WLGCC provides a platform for members to collaborate on overcoming barriers to decarbonization, accelerating local climate change solutions and ensuring the benefits of the clean energy economy are distributed to everyone throughout the state.
The IRA, as well as other federally funded programs through the Infrastructure Investment and Jobs Act, provides long sought-after resources and capital to support communities in reaching their clean energy and climate goals. Several examples of federal programs and their current and expected impacts on local communities are highlighted below.
Elective (i.e., Direct) Pay Tax Credits
Local governments and other tax exempt entities can receive a payment for the full value of the tax credit for implementing clean energy projects. Impacts: Relieve local government staff resources from lengthy grant or loan application processes, provide additional resources for local governments to lead by example with clean energy projects.
Expanded Tax Credits for Individuals
Effective in 2023, updated tax credits are available for eligible home efficiency improvements. Additionally, individuals purchasing qualified electric vehicles are also eligible for tax credits. Impacts: Individuals have more resources to buy down the cost of an electric vehicle and make their home more efficient and resilient through technologies like solar, battery storage, heat pumps, and insulation.
The State will apply to receive funds to provide rebates to single family and multi-family households on energy efficiency upgrades, with a portion of funds dedicated to low income and disadvantaged communities. This program will be administered through the statewide Focus on Energy program, leveraging its existing delivery infrastructure. Impacts: Close market gaps by facilitating increased uptake of efficiency and electrification technologies, including in low and medium income households. The Department of Energy expects households to save 20% in energy usage or more, reducing energy burdens.
Climate Pollution Reduction Grants Program
The state has received $3 million to facilitate an inclusive planning process and produce a Priority Climate Action Plan that will identify effective pollution reduction strategies. Impacts: This effort will contribute to aligning the state’s efforts with local plans and identified needs while also introducing additional grant opportunities to implement climate solutions and increase local capacity to sustain these efforts.
This program will mobilize financing and capital to make clean energy investments in historically under-resourced communities. Impacts: Program components like the recently released Solar for All competition will help make solar energy more accessible to low income and disadvantaged communities through financial incentives and technical assistance.
“Our local government members have worked diligently over several years to make progress on their clean energy and climate action goals, but much needed capital and resources have been lacking up to this point”, noted Allison Carlson, Executive Director of WLGCC. “The Inflation Reduction Act provides critical investments in our local communities to create a thriving and resilient future for everyone in the state.”