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Inflation Reduction Act

Electric cooperatives are leading the charge to reliably meet tomorrow’s energy needs at a cost consumers can afford. Several provisions in the IRA provide co-ops with new tools as they navigate the changing energy landscape and prepare for a future that depends on more electricity to power the American economy.

Where we stand

Electric co-ops secured two important policy wins through the budget reconciliation bill in 2022. The legislation gave co-ops direct access to energy tax incentives and created a new voluntary grant and loan program at USDA specifically for electric co-ops to support rural energy innovation. NRECA continues to engage with both USDA and Treasury as they finalize their rules for each of these programs. If federal agencies structure these programs according to congressional intent, they are exciting opportunities for co-ops. Keeping the programs flexible and approachable will help co-ops leverage new tools as they plan to meet the future energy needs of their communities.

Digging deeper

Direct-pay tax credits

Congress recently gave electric co-ops direct access to energy innovation tax incentives. Access to these tax credits will bolster co-op investments in carbon capture, grid modernization, renewables, battery storage and other energy technologies. As the rules for the program are implemented, NRECA will work to ensure they are achievable and workable for the nation’s co-ops.

Voluntary clean energy incentives

The 2022 budget bill created a new voluntary $9.7 billion grant and loan program at USDA designed specifically for electric co-ops that purchase or build new clean energy systems. These are essential new tools as we prepare for a future that depends on more electricity to power the American economy. NRECA is continuing to work with federal agencies on implementing these programs as the rules are finalized.

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