June 14, 2023 – Today, President Biden released initial guidance on direct pay for tax credits under the Inflation Reduction Act. The historic bill includes billions of dollars in provisions that help address the climate crisis and move the country towards a clean energy economy. Direct pay is a critical mechanism for tax exempt entities like non profit organizations, state, local and Tribal governments, public utilities, and rural electric cooperatives to gain access to clean energy tax credits for the first time.
With transformative incentives such as tax credits now being made available through the bill, Climate Mayors is keen on ensuring cities have access to as much support as possible to continue decarbonizing, electrifying and adapting in the face of climate change.
Our member cities are thrilled to receive this guidance as they have ambitious plans for using the credits to support various programs and projects to lower energy costs for consumers, advance renewable energy deployment, and advance environmental justice. From electric vehicle charging infrastructure to solar power to widespread building electrification, these funds will be highly transformative for the speed and efficacy of the green transition at large. With this support and guidance from the White House, clean energy financing can be transformed and accelerated for cities across the country. Our Mayors aim to use direct pay to take climate action plans further and faster than ever.
Climate Mayors thanks the Biden administration for providing useful guidance on direct pay for Inflation Reduction Act tax credits and continuing to factor in public and stakeholder needs when creating guidance. This attention to accessibility ensures that cities and municipalities will be able to utilize and amplify investments to their fullest potential. Together, we will raise the bar on clean energy advancement across the nation.
“Once again, the Biden Administration has reinforced its commitment to meeting our nation’s climate goals,” said Madison Mayor and Climate Mayors Chair, Satya Rhodes-Conway. “With this new guidance, Climate Mayors members are prepared to meet the moment and deliver a greener, cleaner future. In Madison and across the country, local leaders are switching to renewable energy, investing in clean transportation, and creating good, green jobs in the process. We are grateful to the administration for its continued support in ensuring that cities can take full advantage of this historic climate funding.”
“The guidance shared today from the White House demonstrates that the Biden Administration continues to deliver to meet local needs,” said Phoenix Mayor and Climate Mayors Vice-Chair, Kate Gallego. “It is imperative for governments to incentivize the clean energy transition to ensure climate targets are met, and this administration has prioritized accessibility to maximize impact.”
“The Biden Administration and Inflation Reduction Act continue to break down barriers for local leaders to implement critical climate forward infrastructure,” said Cleveland Mayor and Climate Mayors Vice-Chair, Justin Bibb. “The direct pay guidance further uplifts Cleveland’s – and the nation’s – efforts in growing our clean energy economy by opening the doors to folks previously under the radar. A true good faith investment in equitable access across the board.”
“The guidance and support provided by the Biden Administration today is a crucial step in our continued progress toward a clean-powered, resilient future for Americans,” said Houston Mayor and Climate Mayors Chair Emeritus, Sylvester Turner. “Through direct pay, local leaders can supercharge clean energy projects in our communities to make impactful strides toward climate and clean energy goals.”
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About Climate Mayors:
Climate Mayors is a bipartisan network that has mobilized more than 750 U.S. mayors since 2014, demonstrating climate leadership through meaningful actions in their communities. Representing 46 states and nearly 60 million Americans, the Climate Mayors coalition reflects U.S. cities’ commitment to climate progress. For more information, please visit our website and follow climate mayors on Twitter and LinkedIn. For media inquiries please contact climatemayors@fgsglobal.com.