Three actions your company can take now to benefit from the Inflation Reduction Act

Published: March 29, 2023 by Victoria Mills

Climate Policy Leadership

The Inflation Reduction Act (IRA) is a major win for American businesses, offering companies billions of dollars in tax credits, loans, and other incentives to accelerate progress toward their climate and business goals. However, the law itself is massive, with hundreds of pages of tax code sections written in ways that may not clearly outline the benefits to businesses. 

Today, EDF launches Understanding the Inflation Reduction Act, a new set of resources we developed specifically for companies to take advantage of the IRA’s climate and clean energy provisions. Our hub includes the following materials, developed in partnership with Deloitte:

  • A Snapshot for Businesses that highlights the key sectors impacted by the Inflation Reduction Act and how companies can start taking advantage of its incentives.
  • A set of Activation Guides for five use cases: renewable energy procurement, fleet electrification, advanced manufacturing, building energy efficiency and climate-smart agriculture. The Renewable Energy Activation Guide is live and the rest will be launched in April. 

The IRA positions the US to cut climate pollution up to 42% by 2030, putting our national target of 50% below 2005 levels within reach. But there is work to be done to achieve this goal. American businesses play a key role in securing these emissions reductions and ensuring that IRA incentives are implemented efficiently, effectively and equitably. 

We don’t have time to waste, and the time for businesses to start taking advantage of the benefits within the IRA is now. Here are 3 actions your company can take today:

(1) Identify Relevant Provisions

  • Explore Understanding the Inflation Reduction Act to learn more about the specific provisions that enable credits, grants, and loans applicable to your organization​.
  • Check the eligibility criteria such as location and labor requirements​.
  • Speak with external experts to validate research and fill in knowledge gaps​.

(2) Engage Stakeholders

  • Connect internally with your Finance, Procurement, Tax, and Government Relations teams to gain buy-in and build your business case​.
  • Participate in Treasury and Executive Agencies’ RFIs to drive efficient, effective, and equitable IRA implementation. The IRA Tracker is a great resource to know when those opportunities are open.

(3) Act Quickly

  • Lock in domestic, low-emission suppliers to access IRA credit adders tied to geography, wages, apprenticeship, and more​.
  • Start preparing now to be able to meet incentive caps for grant programs and capitalize on first mover advantages​.

Start by reviewing the IRA Snapshot for Businesses and reach out to our teams if you have any questions. We are here to help.