Contact SEDAC for quick advice about utility efficiency programs and incentives. We are happy to provide information and referrals. Call 800.214.7954 or email us at sedac-info@illinois.edu.
When we provide energy efficiency services, we make sure to identify any available incentives so that our clients can take advantage of these opportunities.
Find out more about SEDAC energy efficiency services.
For a comprehensive listing of all energy incentives and energy efficiency programs available in Illinois, visit the DSIRE database.
Utility Public Sector Incentives
The following utility energy efficiency programs have incentives specifically for public sector facilities or include public sector facilities in their commercial incentive programs.
- Ameren Illinois
- ComEd
- Nicor Gas
- North Shore Gas
- Peoples Gas
- Mid American
- Illinois Municipal Electric Agency
Utility Commercial Incentives
Learn more about utility energy efficiency incentives and services for commercial facilities.
- Ameren Illinois
- ComEd
- Nicor Gas
- North Shore Gas
- Peoples Gas
- Mid American
- Illinois Municipal Electric Agency
Utility Residential Incentives
Learn more about utility energy efficiency services for residential facilities
Solar Incentives
- Adjustable Block Program to support the development of photovoltaic distributed generation projects, traditional community solar projects, community-driven community solar projects, equity eligible contractor projects, and public school projects. See Transition Updates.
- Illinois Solar for All Program to support the development of solar energy in traditionally underserved populations.
- Illinois Net Metering policy.
Solar Investment Tax Credit, a federal program to support the development of PV systems.
State Energy Efficiency Programs
A comprehensive listing of enabling EEPS legislation and docket proceedings is available on the Illinois Energy Efficiency Stakeholder Advisory Group website.
The Illinois EPA Office of Energy Programs
- Energy Efficiency at Wastewater Treatment Plants, administered in partnership with SEDAC and the Illinois Sustainable Technology Center (ISTC)
- Energy Conservation Code and Training, administered in partnership with SEDAC
- Clean Energy Innovation Fund
Federal Tax Credits
The following federal tax credits are available for energy efficiency, electric vehicles, and renewable energy:
- Alternative Fuel Vehicle Refueling Property Tax Credit (Personal)
- Alternative Fuel Vehicle Refueling Property Tax Credit (Corporate)
- Qualified Commercial Clean Vehicle Tax Credit
- Energy-Efficient New Homes Tax Credit for Home Builders
- Residential Renewable Energy Tax Credit
- Energy-Efficient Commercial Buildings Tax Deduction
- Plug-In Electric Drive Vehicle Tax Credit
- Residential Energy Efficiency Tax Credit
CEJA Workforce Funding Opportunities
Administered by: Illinois DCEO, with 3 Regional Administrators (Northern IL, Central IL, Southern IL)
Positions needed: Community organizations to run regional workforce hubs. Can subcontract with other organizations, labor organizations, or educational institutions to deliver program services and training.
Competitive grant process? Yes. DCEO "to select community organizations" through a NOFO process.
Description: An Illinois Climate and Equitable Jobs Act Program. Regional Administrators will create a network of 13 Program delivery Hub Sites in Chicago South Side, Chicago Southwest and West Sides, Waukegan, Rockford, Aurora, Joliet, Peoria, Champaign, Danville, Decatur, Carbondale, East St. Louis, and Alton. The Regional Administrators and DCEO will select one community-based organization to lead workforce efforts in each Hub. Community organizations will be selected every 3 years. They can subcontract out to other organizations or educational institutions to deliver program services and training. The selected community organizations will a) coordinate with Energy Transition Navigators, develop formal partnerships with employers, nonprofit organizations, and more, implement the Clean Jobs Curriculum (including job readiness and soft skills) to program participants. DCEO will develop the core Clean Jobs Curriculum.
Funding allocated: Up to $21,000,000 annually prior to June 1, 2023; $24,333,333 annually thereafter
Administered by: DCEO
Positions needed: Community-based organizations to serve as Energy Service Navigators. Priority will be given to organizations that also have experience serving populations impacted by climate change.
Competitive grant process? Yes
Description: An Illinois Climate and Equitable Jobs Act Program to provide support services for individuals impacted by the energy transition. Services are intended to help individuals overcome financial and other barriers to participation in the Clean Jobs Workforce Network Program and the Illinois Climate Works Preapprenticeship Program. The Department will contract with community-based providers to serve as Energy Service Navigators. These navigators will provide education, outreach, and recruitment services to those impacted by the energy transition, connecting them to the Clean Jobs Workforce Program and Climate Works Preapprenticeship Program. These navigators should partner with educational institutions or organizations working with equity-focused populations, employers, local economic development organizations, labor unions, and more.
Funding allocated for program: Up to $21,000,000 annually
Administered by: Illinois DCEO, with 3 Regional Administrators (Northern IL, Central IL, Southern IL)
Positions needed: Community-based organizations to lead 3 Climate Works Preapprenticeship Hubs. They can subcontract out to other organizations or educational institutions to deliver program services and training.
Competitive Grant Process? Yes.
Description: An Illinois Climate and Equitable Jobs Act Program. Regional Administrators will create a 3 Climate Works Hubs throughout the State. The Regional Administrators and DCEO will select a community-based provider in each region to lead workforce efforts in each Hub. Community organizations will be selected every 3 years. The Climate Works Hubs will recruit, prescreen and provide preapprenticeship training to equity investment eligible persons. They can subcontract out to other organizations or educational institutions to deliver program services and training. The selected community organizations will a) coordinate with Energy Transition Navigators, develop formal partnerships with employers, nonprofit organizations, and more, implement the Clean Jobs Curriculum (including job readiness and soft skills) to program participants. DCEO will develop the core Clean Jobs Curriculum.
Administered by: Illinois DCEO, with 3 Regional Administrators (Northern IL, Central IL, Southern IL)
Positions needed: Community-based organizations to deliver Clean Energy Incubator Program in 13 regional hubs. They can subcontract out to other organizations or educational institutions to deliver program services and training.
Competitive grant process? Yes.
Description: An Illinois Climate and Equitable Jobs Act Program. Regional Administrators will create a network of 13 Program delivery Hub Sites in Chicago South Side, Chicago Southwest and West Sides, Waukegan, Rockford, Aurora, Joliet, Peoria, Champaign, Danville, Decatur, Carbondale, East St. Louis, and Alton. The Regional Administrators and DCEO will select one community-based organization to deliver the Clean Energy Incubator Program in each Hub. Community organizations will be selected every 3 years. They can subcontract out to other organizations or educational institutions to deliver program services and training. Program elements include administrative soft and hard skills training, delivery of specific training in the core curriculum. The program will provide access to low-cost capital for small clean energy businesses and contractors. It will provide financial support, training, mentoring, resources, and networking opportunities.
Eligible organizations: Nonprofit community-based organizations, including an accredited public college or university that: (1) has a history of providing business-related
assistance and knowledge to help entrepreneurs start, run, and grow their businesses; (2) has knowledge of construction and clean energy trades; (3) demonstrates relationships with local residents and other organizations serving the community; and (4) demonstrates the ability to effectively serve diverse and underrepresented populations.
Funds allocated for program: Up to $21,000,000 annually
Administered by: Illinois DCEO, in coordination with the Illinois Department of Corrections
Positions needed: Program Administrators for each Program Delivery Area to administer and coordinate the program. Community-based organizations or educational institutions to provide industry-recognized credentials or education at each facility. May subcontract out for portions of program elements.
Competitive Grant Process? Yes, for the community-based organizations or educational institutions that provide the training.
Description: An Illinois Climate and Equitable Jobs Act Program. The program will prepare returning residents to work in the clean energy and related sector jobs. DCEO will select a Program Administrator for each Program Delivery Area to administer and coordinate the Program. The Program Administrators will coordinate with Regional Administrators and the Clean Jobs Workforce Network Program to execute the program. DCEO will competitively select community-based organizations or educational institutions to provide industry-recognized credentials or education at each facility. The Program Administrator will collaborate to create and publish an employer "Hiring Returning Residents" handbook. They will work with potential employers to promote company policies to support hiring and supporting returning residents. They will provide services such as job coaching and financial coaching. The Community-based organization delivering the training can also subcontract out for portions of program elements.
Eligible organizations: Program Administrators require strong capabilities, experience, and knowledge related to program development and economic management; cultural and language competency needed to be effective in the communities to be served; committed persons or justice-involved persons; knowledge and experience in working with providers of clean energy jobs, etc.
Funds allocated to program: Up to $6,000,000 annually.
Administered by: Illinois DCEO
Positions needed: Primes Program Administrator and three Regional Primes Program Leads (Northern Illinois, Central Illinois, and Southern Illinois), located within program delivery area.
Competitive Grant Process? Yes
Description: An Illinois Climate and Equitable Jobs Act Program. The program will provide one-on-one coaching to contractors, grants to support contractors with capital for upfront project costs, connections and networking opportunities, and more.
Eligible organizations: Program Administrator requires experience in leading a large contractor-based business in Illinois, coaching and mentoring, experience in the clean energy industry, experience working with equity investment eligible community members, organizations, and businesses.
Funds allocated for program: Up to $9,000,000 annually.
Description: This program is designed to provide seed funding and pre-development funding opportunities for equity eligible contractors (businesses and nonprofit organizations). Funding can be used for planning and project development, project application, purchasing and leasing of land, permitting and zoning, interconnection application costs and fees, equipment and supplies, community outreach, staff operations and expenses, and more. Grants will be awarded to projects that most effectively provide opportunities for equity eligible contractors and investment in equity eligible communities.
Competitive process: Yes
Administered by: DCEO
Description: The purpose of this grant is to support the pre-development and development of community solar projects that promote community ownership and energy sovereignty. Its intent is to remove barriers to project, community, and business development caused by a lack of capital. Funds can be used for early stage project planning, project team organization, site identification, securing financing, procurement and contracting, customer outreach and enrollment, preliminary site assessments, development of cooperative or community ownership model, and more.
Max award amount: $1,000,000 per application.
Eligible applicants include community-based organizations and technical service providers working in direct partnership with community-based organizations.
Administered by: DCEO
Description: Purpose is to promote economic development in eligible communities: areas that contain a fossil fuel or nuclear power plant or coal mine that was retired from service or has significantly reduced service within 6 years before the application. Grants must be used to plan for or address the economic and social impact on the community or region of plant retirement or transition. Funding can be used for community input and consultation with stakeholders, grant writing and implementation costs, and tax payment help.
Eligible organizations: Local units of government in eligible areas may join with economic development organizations, local educational institutions, community-based groups, to apply for the grant.
Funds allocated for program: Up to $40,000,000 annually.
Administered by: DCEO
Description: Program to provide upfront capital to support the development of projects, businesses, community organizations, and jobs creating opportunity for historically disadvantaged populations, and to provide seed capital to support community ownership of renewable energy projects. Will coordinate with and supplement existing incentive programs (Adjustable Block program, Illinois Solar for All Program, community renewable generation projects, and renewable energy procurements). Two programs: Equitable Energy Future Grant Program and the Community Solar Sovereignty Grant Program.
Max funding: Up to $1,000,000 per application. Up to $34,000,000 annually.
Eligible organizations: Businesses, organizations, community groups.
Federal Legislation: New Funding Opportunities
Good news! Recent federal energy legislation offers exciting funding opportunities for building upgrades, infrastructure improvements, and workforce development. Much of the focus is on making buildings more energy efficient, investing in renewable energy and electric vehicles, and training people for green jobs. There is something for everyone: businesses, homeowners, federal buildings, non-profit and community organizations, institutions of higher education, state agencies, public schools, municipalities and more.
Below we describe some opportunities from the Federal Infrastructure Investment and Jobs Act Opportunities and the Inflation Reduction Act.
Disclaimer: This list of potential funding opportunities is focused on energy efficiency, solar, and workforce opportunities and is not comprehensive. Many of the grant and funding opportunities are not yet open. We share this list so that organizations can plan for the future. We will post updates as we become aware of them.
Federal Infrastructure Investment and Jobs Act Opportunities
Sec. 40552
Administered by: US DOE, State Energy Programs
Description: Funding for cities, towns, and villages for sustainability, climate, and community resilience projects. 68% of funding will be administered by the US DOE to cities, towns, and counties with populations greater than 35,000. 28% of the funding will be provided to State Energy Programs to administer the grants for small towns (under 35,000). This is a very flexible funding source. Funds can be used to develop and implement an energy efficiency and conservation strategy; conduct building energy audits, establish financial incentive programs, implement energy efficiency, zero-emission transportation & infrastructure improvements and more.
Total funding amount: $550M (~150M to State Energy Programs)
Eligible organizations: State and local governments, tribes
Funding distributed based on an EECBG formula (not a competitive grant)
Estimated application opening date: 4th quarter of 2022
Sec. 40502 (INSULATE Act)
Administered by: US DOE through State Energy Programs
Description: State Energy Programs are to establish a revolving loan fund for commercial or residential energy audits, upgrades, and retrofits. Loans and grants will be provided to recipients that do not have access to private capital.
Eligible entities: Businesses, homeowners, public sector.
Total funding amount: $250,000,000
Administered via State Energy Program formula. 60% will go to priority states.
Estimated application opening: 4th quarter of 2022
Funding organization: DOE Building Technologies Office
Description: A competitive grant program to enable sustained, cost-effective implementation of updated building energy codes. The goal is to help understaffed and underfunded local governments upgrade their building codes to the most recent energy efficiency standards.
Eligible organizations: State or Tribal Energy Programs can apply either alone or in partnership with local building code agencies, codes and standards developers, relevant professional organizations, energy efficiency programs, consumer advocates.
Total funding amount: $225
Status: The US Department of Energy has issued a request for information to gather responses from the public that will inform the program develop and execution of Section 40511 of the Bipartisan Infrastructure Law. Estimated application opening is 4th quarter of 2022.
Funding organization: US DOE
Description: Workforce training program to teach individuals to conduct energy audits or surveys of commercial and residential buildings.
Eligibility: State Energy Programs can apply for the funds and subcontract with partner organizations to deliver the training. Competitive grant process. Must demonstrate a need for training.
Total funding amount: $40M
Estimated application opening date: TBD
Sec. 40541
Funding organization: US DOE
Description: Competitive grant for public schools to make energy efficiency improvements, install renewable energy, install alternative vehicle charging or procure alternative vehicles such as electric school buses. Goals: Improve indoor air quality and make repairs or renovations that reduce energy costs.
Eligibility: Public schools and organizations supporting schools. Can partner with community partners and nonprofits with knowledge and capacity to assist with energy improvements.
Total funding amount: $500M
Estimated Application Opening: 3rd quarter of 2022.
Funding organization: US DOE
Description: A competitive grant program that provides nonprofits with energy efficient materials (roof, lighting, HVAC system improvements, insulation) to reduce energy.
Eligibility: Open to nonprofit organizations.
Total funding amount: $50M
Estimated application opening: 1st quarter of 2023
Administered by: US DOE
Description: Competitive grant for energy and water efficiency upgrades for federal buildings. Funding available for projects to implement energy and water efficiency, renewable energy and climate resilience technologies at federal facilities across the country.
Total funding amount: $250M
Funded by: US DOE
Description: Competitive grant to establish building training and assessment centers
Eligibility: Institutes of higher education
Total funding amount: $10M
Estimated application opening date: 4th quarter of 2022
Funded by: US DOE
Description: Competitive grant to implement an industrial research and assessment center
Eligibility: Institutes of higher education
Total funding amount: $400M
Application opening date: TBD
Sec. 40513
Funded by: US DOE
Description: Competitive grant to provide career skills training for energy efficiency and renewables.
Eligibility: Nonprofit partnerships. Requires 50% cost share
Total funding amount: $10M
Estimated application opening: 1st quarter of 2023
Inflation Reduction Act Opportunities
Description: IRA creates a wide range of new and expanded incentives to help households make energy-saving improvements to their home. Energy-efficient investments can help families conserve energy and drastically reduce their utility bills, while also improving health and comfort. New technologies such as energy-efficient electric heat pumps and heat pump water heaters have the potential to save the average households as much as $6,500 in operating cost savings over the lifetime of the equipment, or $650 annually on their utility bills, while reducing exposure to volatile fossil fuel prices.
- A new state program for low- and moderate-income households will provide instant rebates for new, efficient electric equipment, that in some cases will be enough to pay for the entire cost of the new equipment:
- up to $8,000 for a heat pump for heating and air conditioning,
- $1,750 for an efficient heat pump water, and
- $1,600 for improved insulation to prevent energy waste.
- A new state program for whole-home energy efficiency retrofit projects will provide rebates of up to $4,000 for retrofits that will save 35% of energy use or more, and $2,000 for retrofits that achieve savings of 20% or more. These rebates double for low- and moderate-income homes.
- IRA also creates incentives for a range of new energy-efficient appliances and other energy improvements. These credits will take effect immediately, meaning households can claim the credit for purchases they make today. Households can also claim these credits multiple times, for instance if they buy new windows for the living room this year and for the dining room next year.
- Up to $2,000 for efficient heating, cooling, and water heating equipment, such as a heat pump.
- Up to $1,200 for measures that reduce home energy waste, like efficient windows, doors, and insulation.
- A $150 credit to help pay for an energy audit, allowing a local professional to produce tailored recommendations for how you can lower your energy costs with efficiency improvements.
Description: IRA provides a 30% tax credit for families investing in clean energy systems like solar electricity, solar water heating, wind, geothermal heat pumps, fuel cells, and battery storage for their homes. This can result in valuable savings. For instance, the credit for residential solar electricity will be worth roughly $7,500 for the average household. Considering the upfront cost and average expected savings on electric bills from rooftop solar, the average household can save more than $9,000 over the lifetime of the system, or nearly $400 annually.
Clean Vehicle Credit (30D)
- Maintains the existing $7,500 consumer credit for the purchase of a qualified new clean vehicle, including electric vehicles, plug-in hybrids, and hydrogen fuel cell vehicles.
- Credit is reduced or eliminated if a certain percentage of the critical minerals utilized in battery components are not extracted or processed in the U.S. or a Free Trade Agreement country or recycled in North America. The percentage required increases from 40% in 2024 to 80% in 2026.
- Credit is reduced or eliminated if EV is not assembled in North America or if the majority of battery components are sourced outside of North America. The percentage increases from 50% in 2024 to 100% in 2028.
- Implements a maximum of $80,000 per vehicle for vans, SUVs and pickups and $55,000 for other vehicles.
- Implements an income eligibility limit of $150,000 or $300,000 for joint filers.
- Eliminates the previous manufacturer quota, which phased out the tax credit for manufacturers as they neared 200,000 clean vehicles sold.
- Some models of Tesla, General Motors, and the most popular EV brands would now qualify for the tax credit.
New Previously Owned Clean Vehicle Credit (25E)
- Creates a consumer tax credit for the purchase of previously owned clean non-commercial vehicles, including electric vehicles and plug-in hybrids. Credit is equal to the lesser of $4,000 or 30% of the vehicle cost.
- Sets a maximum sale price of $25,000. Model must be at least 2 years older than the year of sale.
- Implements an income eligibility limit of $75,000 or $150,000 for joint filers.
New Commercial Clean Vehicle Credit (45W)
- For class 1-3 (under 14,000 lbs.) vehicles for commercial use, creates a $7,500 tax credit tax for the purchase of electric vehicles or other qualified clean vehicles.
- For class 4 and above (over 14,000 lbs.) vehicles for commercial use, increases the credit to $40,000.
Extension of Alternative Fuel Refueling Property Credit (30C)12
- Extends tax credit for alternative fuel refueling property credit to property placed into service before 2033.
- Increases the tax credit to 30% of the cost of alternative fuel refueling property up to $100,000.
- Includes Direct Pay and Transferability.
Funding organization: US EPA
Description: 3-year grants are available for projects related to climate change and air pollution, including air pollution monitoring, extreme heat risk mitigation, resiliency and adaptation, indoor pollution reduction, and community engagement.
Eligibility: Tribes, local governments, and universities in partnership with community-based non-governmental organizations (NGOs) are eligible, as well as individual or groups of community-based NGOs.
Total funding amount: $2.8 million for grants and $200 million for technical assistance
Estimated application opening: unknown
Administered by: US FHA
Description: Grants to improve transportation access and mitigate negative safety or environmental impacts in underserved communities. Grants may be used for improvements to reduce air pollution and GHG emissions, manage stormwater run-off, address urban heat islands, and to monitor air quality, transportation related GHG emissions and pollution, and gaps in tree canopy coverage.
Total funding amount: $3 billion, with $1.1 billion set aside for disadvantaged communities.
Eligibility: State, local, territory, and Tribal government entities are eligible.
Federal cost share: Federal cost share of a project in a disadvantaged or underserved community may be up to 100%.
Description:
- $68 million in total to the EPA, including $17 million for education, $17 million for technical assistance, and $17 million for partnerships within low-income and disadvantaged communities related to GHG emissions reductions.
- An additional $18 million appropriated to carry out activities of the program and ensure GHG emissions reductions are achieved from domestic electricity generation and use.
Description: A 40% investment tax credit for solar or wind projects located in a low-income community or on Tribal land and 20% for facilities part of low-income residential housing or low-income economic benefit projects.
Description: $9.7 billion to the Department of Agriculture (USDA) until 2031 for financial assistance (including loans) to improve resiliency, reliability, and affordability of rural electric systems, including:
-
- Purchase of renewable energy and renewable energy systems, zero-emission systems, or carbon capture and storage systems;
- Deployment of these systems;
- Improvements to electric generation and transmission systems.
Maximum award is $970 million and must not exceed 25% of the total project cost.
Provides financial assistance for adoption of clean energy technologies in rural communities.
- $2 billion for the USDA REAP program until 2031 to provide competitive grants and loan guarantees to farmers, ranchers, and rural small businesses for renewable energy systems or energy efficiency improvements.
- More than $300 million is set aside to provide grants and loans to provide financial & technical assistance for “underutilized renewable energy technologies” that are not as widely adopted.
- Federal cost share for grants is raised from 25% to a maximum of 50%.
Description: Provides EPA funding for grants to state, local, regional, and Tribal programs that provide financial support to low and zero carbon technologies and can act as seed capital for regional, local, state, or Tribal green banks that provide financial support for low or zero emission projects.
- Eligible programs must prioritize projects that would not otherwise have access to financing and any repayments derived from grants must be recycled into the program for additional grants or operation.
- The program also provides grants to entities that would then in turn provide funding or technical assistance to establish a financial program as described above.
- Provides $11.97 billion through 2024 to make grants for eligible financial entities or entities that would in turn provide financial or technical support to establish such financial entities.
- Provides $15 billion through 2024 to make grants for eligible entities to provide financial and technical support and support the deployment of clean energy technologies in low-income and disadvantaged communities.
- Provides $30 million for administrative costs of the program through 2031.
Section 45
- Extends the existing production tax credit for applicable renewable energy sources. This tech-specific PTC ends in 2024 and is replaced by the new tech-neutral Clean Electricity PTC (45Y) which begins in 2025.
- Revives the PTC for solar facilities which ended in 2006 and extends to 2024.
- Extends the date of construction for geothermal, wind, closed- and open-loop biomass, landfill gas, municipal solid waste, hydropower, and marine and hydrokinetic facilities to 2024.
- Maintains a credit amount of 1.5 cents per kWh.
- Applies a 10% bonus for meeting domestic manufacturing requirements for steel, iron, or manufactured components.
- Applies a 10% bonus for facilities located in energy communities (defined as brownfield sites or fossil fuel communities).
- Increases hydropower, municipal solid waste, and marine and hydrokinetic credit to full value (was previously halved).
- Strikes the offshore wind credit phaseout for facilities placed into service before 2022.
- Includes Direct Pay and Transferability.
New Clean Electricity Production Tax Credit (45Y)
This newly established, tech-neutral PTC replaces the above Renewable Electricity Production Tax Credit once it phases out at the end of 2024. 45Y is an emissions-based incentive that is neutral and flexible between clean electricity technologies. Taxpayers choose between a PTC (45Y) and an ITC (48E).
- Creates a PTC credit of 1.5 cents per kWh of electricity produced and sold or stored at facilities placed into service after 2024 with zero or negative GHG emissions.
- Applies a 10% bonus for projects located in energy communities (defined as brownfield sites or fossil fuel communities).
- Applies a 10% bonus for meeting domestic manufacturing requirements for steel, iron, or manufactured components.
- Applies a 10% bonus for projects located in low-income communities or on Tribal land; 20% bonus for projects located in low-income residential buildings or part of low-income economic benefit projects.
- Facilities may use carbon capture, utilization, and storage (CCUS) to reach qualifying emissions levels.
- Credits are set to phase out the later of 2032 or when emission targets are achieved (i.e., the electric power sector emits 75% less carbon than 2022 levels). Facilities will be able to claim a credit at 100% value in the first year, then 75%, then 50%, and then 0%.
- Includes Direct Pay and Transferability.
Extends the existing energy investment tax credit for applicable energy projects. This tech-specific ITC ends in 2024 for most technologies and is replaced by the new tech-neutral Clean Electricity ITC (48E), which begins in 2025.
- Extends date of construction in most cases to 2024 and maintains a 10% or 30% credit.
- Maintains 30% credit for solar energy property, geothermal property, fiber-optic solar property, fuel cell property, microturbine property, small wind property, offshore wind property, combined heat and power property, and waste energy recovery property constructed before January 1, 2025.
- Creates 30% credit for energy storage technology3,4 biogas property, microgrid controllers, dynamic glass, and linear generators constructed before January 1, 2025.
- Extends 10% credit for microturbine projects constructed before January 1, 2025.
- 30% credit for geothermal heat pump projects constructed before January 1, 2033. Credit reduces to 26% in 2033 and 22% in 2034.
- Applies a 10% bonus for meeting domestic manufacturing requirements for steel, iron, or manufactured components.
- Applies a 10% bonus for projects located in energy communities (defined as brownfield sites or fossil fuel communities).
- Includes Direct Pay and Transferability.
New Clean Electricity Investment Tax Credit (48E)
This newly established, tech-neutral ITC (48E) replaces the above Energy ITC once it phases out at the end of 2024. 48E is an emissions-based incentive that is neutral and flexible between clean electricity technologies. Taxpayers choose between a PTC (45Y) and an ITC (48E).
- Creates an ITC credit of 30% of the investment in the year the facility is placed in service.
- Applies a 10% bonus for projects located in energy communities (defined as brownfield sites or fossil fuel communities).
- Applies a 10% bonus for meeting domestic manufacturing requirements for steel, iron, or manufactured components.
- Applies a 10% bonus for projects located in low-income communities or on Tribal land; 20% bonus for projects located in low-income residential buildings or part of low-income economic benefit projects.
- Clean electricity projects smaller than 5 MW can include the costs of interconnection under the ITC.
- The Treasury Department is directed to publish emission rates for similar technologies each year for taxpayers to use for purposes of determining their eligibility.
- Credits are set to phase out the later of 2032 or when emission targets are achieved (i.e., the electric power sector emits 75% less carbon than 2022 levels). Facilities will be able to claim a credit at 100% value in the first year, then 75%, then 50%, and then 0%.
- Includes Direct Pay and Transferability.
Description: $200 million through 2031 for DOE to provide state energy offices with grants for the training of contractors to carry out energy efficiency upgrades, including those in the above residential energy efficiency incentives.
Carbon Capture and Sequestration Tax Credit
Enhances the tax credit for carbon capture and direct air capture (DAC).
- Extends the deadline for construction to January 1, 2033 and increases the credit amount:
- From $50 to $85 per ton for CCUS for industrial facilities and power plants for saline geologic formations.
- From $35 to $60 per ton for utilization of captured CO2 and its precursor carbon monoxide to produce low and zero-carbon fuels, chemicals, building materials and other products, or for enhanced oil recovery (EOR).
- From $50 to $180 per ton for DAC stored in saline geologic formations and from $35 to $130 per ton for utilization or EOR.
- Decreases minimum plant size eligibility threshold:
- From 100,000 to 1,000 tons per year for DAC.
- From 500,000 to 18,750 metric tons per taxable year for Electric Generating Facility paired with design capacity requirement below.
- From 25,000 to 12,500 metric tons per taxable year for any other facility.
- Design Capacity Requirement: Point-source carbon capture projects on electric generating units will be required to design capture equipment to capture at least 75% of unit (not facility) CO2 production, subject to a review if facility emissions increase in future years.
- Direct Pay Compromise: Projects will receive direct pay for the first 5 years after the carbon capture equipment is placed in service (no direct pay option for the final 7 years of the credit). Nonprofit organizations and co-ops can receive direct pay for all 12 years of the credit.
Investment in Low-Carbon Materials & Buildings
Supports low-carbon materials procurement for federal projects, along with multiple efforts to standardize environmental impact disclosure, labeling and verification of low-carbon concrete and construction materials—an essential component of federal procurement.
- $250 million for the Environmental Protection Agency (EPA) to support the development of standardized, high-quality, transparent environmental product declaration of greenhouse gas emission associated with construction materials.
- $100 million for EPA to identify and label low-carbon construction materials used for federal buildings and federal transportation projects in consultation with Federal Highway Administration (FHA) and the General Services Administration (GSA).
- Procurement of low-carbon materials in federal projects:
- New authority granted to the Federal Emergency Management Agency (FEMA) to cover costs associated with low-carbon materials or to encourage low-carbon and net-zero energy projects when administering disaster relief.
- $2 billion for FHA to reimburse or provide a 2% incentive in federal transportation projects for the use of low-carbon construction materials that cost the same or incrementally more than traditional construction materials.
- $2.15 billion to the Federal Buildings Fund for GSA to acquire and install low-carbon building materials and products.
Biomass, Carbon Removal, and Forest Management
- $50 million in competitive grants from the U.S. Forest Service to states and eligible entities to pay forest landowners for practices that increase carbon removal on private lands.
- $100 million for the U.S. Forest Service Wood Innovation Grant Program to support solutions that utilize forestry residue for innovative end uses.
- New Clean Electricity Production Credit (45Y) includes net-negative emission electricity production using solutions like Biomass Energy with Carbon Capture and Storage (BECCS). Net emission for facilities which use combustion and gasification technologies (used to breakdown biomass) is accounted for through cradle-to-gate life cycle assessment.
DOE Loan Programs Office (LPO)
LPO has over $40 billion in available loan and loan guarantee authority under its three programs: $21.9 billion for Title 17, $15.1 billion for Advance Vehicles Technology Manufacturing (AVTM), and $2 billion for Tribal Energy Loan Guarantee Program (TELGP). IRA increases loan authority for these programs, appropriates additional funds for credit subsidies, and establishes a new LPO program focused on the reutilization of energy infrastructure.
- $40 billion in new Title 17 loan authority available through 2026 with $3.6 billion for credit subsidies.
- $3 billion for AVTM credit subsidies and eliminates $25 billion loan authority cap.
- $75 million for TELGP loan authority through 2028 for direct loans and loan guarantees and increases loan authority cap from $2 billion to $20 billion.
- Creates the Energy Infrastructure Reinvestment Financing program to make loan guarantees, including refinancing, for projects that:
- Retool, repower, repurpose, or replace energy infrastructure that has ceased operation (including environmental remediation and carbon management on fossil fuel projects), or
- Enable operating energy infrastructure to avoid, reduce, utilize, or sequester greenhouse gas emissions.
- Provides $5 billion to carry out program authorities and $250 billion in loan authority through 2026.
Other Funding Opportunities
Check out the websites below to find more grants and funding opportunities for your organization.
- Grants.gov. Website for all federal and state government grants.
- Illinois Grant Accountability and Transparency Act Website List of active funding opportunities, by state agency.
- Illinois DCEO Grant Opportunities: Lists available Illinois Department of Commerce and Economic Opportunity grants, as well as several federal grant opportunities.
- Illinois State Board of Education Grants Page: The State Board of Education offers numerous direct grant opportunities through state and federal funds received by the agency. In addition, there are opportunities for school districts to apply directly to federal agencies or private/corporate foundations for funding.
- Illinois Board of Higher Education Grant Administration: The Board administers state and federal grant programs and receives funds for other initiatives.
- Illinois Environmental Protection Agency Grants and Loans: The Illinois EPA provides financial assistance for certain land, air, water, and energy related projects.
- Illinois Housing Development Authority Revitalization & Repair Program Grants. They fund local governments and non-profit organizations to offer programs that address vacant residential properties and the blight that usually follows to benefit communities. They also fund programs that allow homeowners to make repairs and accessibility improvements.
- Illinois Capital Development Board Grants. CBD administers building construction grant programs
- Candid. Excellent website for researching foundations, grants, and nonprofits. Subscription required for some services. Candid's GuideStar is the most complete up-to-date nonprofit database available.
- SPIN. The world's largest database of sponsored funding opportunities (government, foundation, more).
- Grant Forward. A funding opportunity database and recommendation service built by academics for researchers. Subscription required.
- GrantWatch. A comprehensive grant search database with opportunities from foundations, corporations, federal, state, and local government funding sources. Subscription required.