What roles can local governments play to maximize the benefits of the Inflation Reduction Act? City Scale partnered with C40 and Climate Mayors to develop Climate Action and the Inflation Reduction Act: A Guide for Local Government Leaders. This resource details the features of key climate-related IRA provisions and suggests ways local governments can contribute to equitable outcomes on the ground.
Several major IRA programs create direct opportunities for local governments, including the Neighborhood Access and Equity Grant Program, assistance with energy code adoption, and the direct pay provisions of many of the clean energy tax credits, which allow non-tax-paying public agencies to receive the financial benefits of the tax credits.
An even larger number and with greater funding, however, are directed at private-sector investments or flow through states. These multiple, often intersecting investments invite local governments to play crucial roles in convening, connecting, and mobilizing local and regional partners to help ensure that the funds benefit the residents, businesses, and organizations where they will have the greatest impact.