Transitioning to clean and renewable energy means local jobs and growth for our communities

🗽There is no greater power than a community discovering the truth and working together to make sure an injustice is not repeated

For the first time ever, the federal government will give direct funding to tax-exempt entities like local governments, schools, hospitals, public utilities, churches, and non-profit organizations to build renewable energy projects like solar systems, wind systems, or weatherization projects.

• Renewable energy projects like solar arrays, wind turbines, and storage resources like batteries all save money by making energy cost less, clean up the air we breathe, and can create good-paying, union jobs.

• By owning and operating a renewable energy system, our community gets resilient power and the chance to take direct action on the climate crisis. It also saves us money that we can use to fund the things our community needs. 

• It works by giving eligible tax-exempt entities like local governments, schools, hospitals, public utilities, houses of worship, and non-profit organizations access to tax credits that were only available to corporations.  

• Since these entities are tax-exempt, the tax credits will mean direct funding from the federal government to support these projects. The funding will cover 30% to 70% of the project costs, depending on whether we buy American-made materials and if the projects are located in the communities who need them most. 

• These tax credits last until 2032, and every project that completes the pre-filing process and meets the IRS requirements (more details on the process coming soon) will receive the tax credits. That means our community doesn’t have to compete - everyone who completes a qualifying project gets the funds! And we can keep getting funding for each new project that an eligible entity completes in our community. The possibilities are endless, and our imaginations should carry the day.

• Transitioning to clean and renewable energy isn’t just critical to addressing the climate crisis; it can also mean big things for our community because it can create good, green, union jobs that will sustain our families and help our community thrive.

• But that can only happen if we ensure that the new energy projects we are building use contractors who pay prevailing wages and support their workers’ right to join a union.

• Union work sites are safer; they have highly trained and professional workforces and are ready to take on new green projects. By working with unions, we can make sure renewable energy gets built right and built to last. 

• There are also extra tax credits and incentives for projects that strengthen high-road labor standards and create good jobs, so doing the right thing actually saves us money!

• We want the jobs we are creating to help our communities thrive. That means utilizing training and apprenticeship programs for our neighbors so they can get their foot in the door.  

  • It also means paying good family-sustaining wages so families can stay in our community and build a good life. By creating good union jobs that last, our community can benefit from green energy.  

• Through agreements with employers and the community, we can ensure these sustainable projects hire from the local community and establish equitable labor practices.

• The Congressional Progressive Caucus Center offers training and support this program. You can find resources at https://www.progressivecaucuscenter.org/direct-pay or by contacting them at katie@progressivecaucuscenter.org. 

Check out these other great resources on the Inflation Reduction Act:

• Inflation Reduction Act Guidebook, The White House

• About Direct/Elective Pay, The White House

• Elective Pay (Direct Pay) Overview, The Internal Revenue Service

• Inflation Reduction Act Prevailing Wage and Apprenticeship Requirements, Department of Labor

• Analysis of the Climate and Energy Provisions in the Inflation Reduction Act, The Congressional Progressive Caucus Center

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