Public Resource
Unlocking Clean Energy Incentives for Underserved Communities
Rachel Isacoff. The Rockefeller Foundation
The Inflation Reduction Act provides an unprecedented opportunity to foster more equitable participation in clean energy development and channel resources into historically marginalized communities. Because of the IRA’s Direct Pay provision, nonprofits, and state, local, and Tribal governments can now access tax credits over 10 years for clean energy projects in underserved communities. This democratizes energy, unlocking the potential for diverse entities across the U.S. to own clean energy assets as a wealth-building opportunity. It simultaneously brings other community benefits, like new high-road jobs, lower energy costs, and climate resiliency. The following is required to take advantage of these policies: organizing around outreach and education; supporting predevelopment and building scaled pipelines of well-underwritten and well-structured projects; improving the efficiency of financing and speeding access to capital; and helping non-tax-paying entities navigate tax credit filing processes.