Who is a member?
Our members are the local governments of Massachusetts and their elected and appointed leadership.
In addition to grant opportunities, the federal Inflation Reduction Act includes several tax credits and rebates to incentivize clean energy projects.
The IRA includes a provision that, in lieu of tax credits, makes a direct payment option available to non-taxable entities investing in and producing clean energy. Municipalities, along with entities such as water and school districts, will have access to a direct payment option applicable to tax years 2023 through 2032.
“Direct pay” will make municipal clean energy projects more affordable for local governments. Additional details of the implementation of direct payments have yet to be determined by the U.S. Department of the Treasury.
Direct pay will be available through the following Production Tax Credit and Investment Tax Credit programs:
• Renewable Electricity Production Tax Credit
• Energy Investment Tax Credit
• Carbon Capture and Sequestration Tax Credit
• Advanced Energy Project Credit
• Nuclear Power Production Tax Credit
• Clean Electricity Investment Tax Credit
• Clean Hydrogen Production Tax Credit
• Commercial Clean Vehicle Credit
• Advanced Manufacturing Production Tax Credit
• Alternative Fuel Refueling Property Credit
• Clean Electricity Production Tax Credit
• Clean Fuel Production Credit
Enacted last summer, the Inflation Reduction Act is intended to provide funding and incentives to expand clean energy production, transform rural power production, reduce greenhouse gas emissions, create jobs, and spur economic growth. Many of its tax credits and rebates are aimed at individuals and households to transform their energy use and consumption — from home energy efficiency improvements to rooftop solar and electric vehicles.
For more information about the law, see the White House’s IRA Guidebook and the Internal Revenue Service’s IRA webpage. U.S. Sen. Ed Markey’s office has published an Inflation Reduction Act Implementation Guide that highlights grant and rebate opportunities, opportunities for Environmental Justice Communities, and links to resources.