INFLATION REDUCTION ACT
The Inflation Reduction Act (IRA) will provide millions of Southern families with relief by lowering prescription drug costs, health care costs, and energy costs.
WHAT IS IRA?
The Inflation Reduction Act (IRA) is an enormously consequential bill that will lower the cost of living for America’s families. The legislation reduces the price of prescription drugs, health care, and energy for Americans — all while fighting inflation and reducing the deficit. It makes the largest investment in U.S. history to combat the climate crisis. It will increase American energy security, create good-paying jobs, and position the United States to be a world leader in clean energy.
INSIDE THE IRA TOOLKIT
The Inflation Reduction Act (IRA) and the Bipartisan Infrastructure Law (BIL) fund numerous programs specifically for communities facing disproportionate health, environmental, and economic burden. These programs for disadvantaged communities are available across sectors, including clean energy and transit, climate change, affordable housing, environmental remediation, clean water, and workforce development.
Click here to explore BIL/IRA Technical Assistance Programs.
MORE IRA RESOURCES
Beginning in October 2023, any new programs included in the Justice40 Initiative are expected to use the Climate and Economic Justice Screening (CEJST) Tool per the White House guidance.
This CEJST Tool identifies distressed communities (disadvantaged communities that are overburdened and underserved) using indicators of burdens in eight categories – climate change, energy, health, housing, legacy pollution, transportation, water and wastewater, and workforce development.
Federal agencies will use the tool to help identify disadvantaged communities that will benefit from programs included in the Justice40 Initiative. The Justice40 Initiative seeks to deliver 40% of the overall benefits of investments in climate, clean energy, and related areas to disadvantaged communities.
With the passage of the IRA, non-profits and houses of worship now have easier access to clean energy funds and tax credits through a program called “direct pay.” Before the IRA, only homeowners and commercial entities with some tax liability could claim tax credits when installing solar panels, wind turbines, or other eligible technologies on an eligible property. Now, the “direct pay” option means non-taxable entities can also benefit from these credits.
Interfaith Power and Light (IPL) has created this faith community resource spreadsheet to help houses of worship identify federal grant and tax credit opportunities that are available.
Rewiring America, a leading electrification nonprofit focused on electrifying our homes, businesses, and communities, has developed the IRA Calculator to help households figure out how much they can receive.
This article by the Center for American Progress provides details on how the IRA provides numerous financial incentives for purchasing climate-friendly technologies, creating significant savings opportunities for households.
Linked below is a guidebook developed by the White House providing insight into the IRA’s investments in clean energy and climate action.
Local Progress Impact Lab shares the following summary: The purpose of this memo is to equip local government leaders with policy and oversight tools to maximize the potential of these federal funds. Through local action, these federal funds can be a powerful force for advancing equity in our communities; this memo will focus in particular on environmental justice, job quality and worker protections, community engagement, and public capacity building.