Helping unions,
governments, and
non-profits put
the IRA to work in
every community.
Helping unions,
governments, and
non-profits put
the IRA to work in
every community.
Maximizing the Opportunity
The Census Bureau estimates there is $125 billion in public construction every year that could qualify for tax incentives in the Inflation Reduction Act.
These incentives create tremendous opportunities for unions, their signatory contractors, state and local governments, and non-profits. Unfortunately, too few entities fully understand these tax incentives and the benefits they can provide.
RePowerUS is committed to working with stakeholders on a project-by-project basis to maximize the return on IRA tax incentives to create good jobs on projects that are clean, efficient, and pay dividends for communities for years to come.
The Tax Incentives
Clean Energy Investment or Production Tax Credit
The Inflation Reduction Act (IRA)expands and extends tax incentives to governments, non-profits and tribal entities for wind, solar, and geothermal projects.
- An investment tax credit of 30% for projects that meet prevailing wage and apprenticeship standards.
- A production tax credit of 1.5 cents/kW credit for projects that meet prevailing wage and apprenticeship standards.
- Stackable tax credit bonuses of 10% for domestic content as well as low-income and energy communities.
- A direct pay feature that allows public and not-for-profits to exchange tax credits for a cash refund from government.
A transferability feature that allows for-profit entities to sell tax credits to third parties.
Energy Efficiency Deductions
The IRA also expands tax deductions for installing qualifying energy efficient systems in new constructions and retrofits.
The deduction for projects meeting prevailing wage and apprenticeship requirements is $2.50, increasing by $0.10 for each percentage point of reductions above 25% until it reaches $5.00, multiplied by the square footage of the building.
Educating Stakeholders
RePowerUS provides written materials detailing the incentives, a calculator to estimate potential savings, and webinars to walk stake holders through the process.
On-going training is available for government entities, including school boards, city and county councils, state green banks, and publicly owned utilities. Non-profits such as hospitals, religious institutions, and NGOs are also encouraged to learn how to take advantage of the incentives.
Contractors, Project Managers, and the union work force required to fully unlock these incentives have an important role to play in the completion of these projects and are central to the RePowerUS education process.
Supporting Project Teams
RePowerUS works with project teams to identify all systems that qualify for both tax credits and deductions, assist with opportunities to “stack” systems to take advantage of opportunities for multiple deductions and credits, and help project teams manage energy efficiency deductions for the project.
RePowerUS will also help project owners with the pre-registration process for tax credits and insure they are filing the proper IRS paperwork to claim any credits once the project is in service.
Because this is a new program, especially for government and non-profit entities, RePowerUS will also help troubleshoot any issues to ensure timely acceptance of filings by the IRS and a smooth process for credit processing.
