Inflation Reduction Act to Benefit PA, Philadelphia with $700M+
TL/DR –
The Inflation Reduction Act (IRA), enacted in 2022, directed significant federal funding towards climate action, clean energy, environmental justice, and economic development. As of 2024, Philadelphia and the State of Pennsylvania have received or are due to benefit from over $700 million in climate action and clean energy investments from the IRA, with Philadelphia entities being awarded over $55 million from seven IRA programs. The IRA also dedicated $70 billion to grants for state, tribal, and local governments, and private entities, and within a year of becoming law, most of this funding had been allocated or was pending selection.
The Impact of the Inflation Reduction Act
Philadelphia and Pennsylvania have greatly benefited from the Inflation Reduction Act (IRA), a 2022 law promoting climate action, clean energy, and economic growth. They’ve secured over $700 million in investments.
As of December 5, 2024, Philadelphia has been awarded over $55 million through 7 IRA programs. Additionally, they’re eligible for about $685 million in funding and incentives from 12 IRA programs.
IRA Success Stories
The IRA has dedicated $70 billion of its $370 billion fund to grants for governments and private entities. By early 2023, 77% of IRA grant funding had been allocated. The IRA has led to significant investments:
- In 2023, $8.4 billion in IRA tax credits helped 3.4 million Americans make their homes more sustainable.
- Since 2024, 250,000 Americans have saved roughly $1.5 billion through the IRA’s electric vehicle tax credit.
- The Biden-Harris Administration announced that companies have invested over $265 billion in clean energy, creating over 330,000 new jobs nationwide.
The IRA Forum
The Office of Sustainability has been tracking IRA funding opportunities and conducting a quarterly IRA Forum. The City has been awarded $33 million in grant funds so far, with more in pending applications. The Division of Energy and Climate Solutions is helping departments maximize funding for capital projects through the IRA’s Direct Pay program.
To join the IRA Forum and receive updates, contact Dominique Smiley at dominique.smiley@phila.gov.
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