The IRA provides $400 Billion in federal funding for clean energy carbon reduction to address climate change. The IIJA provides $550 Billion in federal funding, over the next 5 years, for infrastructure, including EV charging infrastructure, as well as numerous projects that often include lighting, such as bridges, tunnels, highways, railway improvements, and more.
The IRA opens up significant funding for non-profits, including many schools and healthcare organizations to reduce carbon emissions, and these can include lighting upgrades. Previously, tax credits were typically given to for-profit entities. The IIJA funding similarly benefits non-profits in ways that historically weren’t possible.
Businesses and tax-exempt organizations can now benefit from Section 179D Energy Efficient Commercial Buildings Tax Deduction for energy-efficient projects. Beyond 179D, companies and non-profits can use other tax credits for upgrades and construction projects. For example, the Section 148 Investment Tax Credit (ITC).
Other relevant funding programs in the IRA & IIJA include:
- Greenhouse Gas Reduction Fund (For-Profits & Non-Profits). $27 Billion administered by US EPA.
- Nonprofit Energy Efficiency Materials Pilot Program (Non-Profits). US DOE pilot program with $50 Million for building energy improvements, including lighting.
- Renew America’s School grant program (Non-Profits). This fund provides financial assistance for a variety of necessary projects to school districts across the country.
- Grants for Energy Efficiency Improvements and Renewable Energy Improvements at Public School Facilities(Non-Profits).
- Public School Facilities Grants (Non-Profits).
- Property Assessed Clean Energy (PACE) (For-Profits). Can cover 100% of upfront cost for an energy or resilience upgrade.
More information is available in a great article by EC&M here.
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