Take Advantage of the IRA
Environmental Defense Fund
With the Inflation Reduction Act (IRA), the US has the potential to cut greenhouse gas emissions by up to 42% by 2030, putting the target of 50% below 2005 levels within reach. But in order to achieve this goal, American businesses need to act now to ensure that IRA incentives are implemented efficiently, effectively and equitably.
On August 16, 2022, the biggest package of climate investments in U.S. history was signed into law. The Inflation Reduction Act (IRA) includes $369 billion in funding to tackle climate change and brings the U.S. closer to the goal of cutting climate pollution in half from 2005 levels by 2030. Though an ambitious piece of climate legislation, achieving these reductions depends on robust business uptake of the investments and incentives included in the law.
Learn how your company can start preparing now to make the most of these provisions and meet your corporate climate goals.
Identify Relevant Provisions
Understanding the IRA and its opportunities for business is the first step in unlocking incentives. Your company should conduct research to learn about the specific provisions that enable credits, grants, and loans applicable to your organization. By understanding the eligibility criteria, such as location and labor requirements, you will know what is needed to unlock investments.
You can also consult with experts to learn about specific provisions and understand how they apply to your buyers and producers, such as the key abatement sectors that will most likely benefit from the IRA:
- Power
- Transportation
- Industry
- Building
- Agriculture and Land Use
Engage Stakeholders
Engaging stakeholders is critical for obtaining buy-in. Connect with teams at your company, such as Finance, Procurement, and Government Relations to create the business case for climate investments and participate in Treasury and Executive Agencies’ requests for information (RFIs) to drive efficient, effective, and equitable IRA implementation.
Act Quickly
Start preparing now to ensure your company can capitalize on the opportunities available, many of which took effect in January 2023. This includes locking in domestic, low-emission suppliers to access IRA credit adders tied to geography, wages, apprenticeship and more.