Wyden Report Shows Success of IRA's Direct Pay Program

Wyden Report Shows Success of IRA's Direct Pay Program

Newly Released IRS Data Shows Unprecedented Clean Energy Boom Under IRA Direct Pay Program, Makes Case for Reinstatement, Wyden Says

Washington, D.C. - Senate Finance Committee Ranking Member Ron Wyden, D-Ore., today released previously undisclosed Internal Revenue Service (IRS) data showing that in the first two years of the Inflation Reduction Act's (IRA) Direct Pay Program, $2.5 billion in funding was distributed to schools, Tribal nations, rural electric co-ops, local governments, and other tax-exempt entities across all 50 states that previously could not access clean energy tax incentives, directly lowering energy costs and modernizing local energy infrastructure.

Before creating the Direct Pay Program, tax-exempt entities were forced to rely on complex, costly third-party tax-equity financing structures to build clean energy infrastructure, surrendering significant portions of their savings to corporations.

"This report shows there is massive demand for any and all programs that help lower energy costs and renew aging infrastructure," Wyden said. "Instead of meeting the energy crisis head on by increasing supply, Trump and Republicans have doubled down, sabotaging any and all renewable energy projects that will help bring costs down for consumers and meet demand. When Democrats have a trifecta of power, reinstating the wind and solar tax credits and bolstering the Direct Pay Program will be a top priority to help bring an end to Trump's energy crisis."

Key findings from the Senate Finance Committee analysis of the new Treasury data include:

• Over $2.5 Billion Distributed: Across the first two years of implementation, eligible non-taxable entities submitted over 2,600 clean energy project filings, receiving more than $2.5 billion in direct cash payouts for completed projects.

• Impact on Local Schools and Services: These claims were submitted by local school districts, public hospitals, rural electric co-ops, and other community organizations to fund rooftop solar installations, energy storage, and energy-efficiency overhauls directly to local residents.

The full report is here.

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