Philadelphia and Pennsylvania to reap at least $700 million in benefits from the Inflation Reduction Act

The Inflation Reduction Act (IRA), passed and signed into law in 2022, represents one of the largest ever federal investments in climate, clean energy, environmental justice and the American economy. Two years since the IRA passed, Philadelphia and the Commonwealth of Pennsylvania have secured and/or will benefit from over $700 million worth of climate action and clean energy investments.

As of December 5, 2024:

• Philadelphia agencies and organizations have been awarded over $55 millionin funding from 7unique IRA programs including, but not limited to:
  • EPA's Climate Justice Community Change Grants
  • USDA's Urban and Community Forestry Grants
  • DOE's Assistance to Adopt the Latest or Zero Energy Building Codes Grant
  • EPA's The Environmental Justice Government-to-Government Program
• Philadelphia was a partner in and/or will be eligible to tap into about $685 millionin additional funding, financing, and incentives from 12unique IRA programs. These grants were awarded to the region covering Philadelphia and Pennsylvania and the region. Major IRA programs include, but are not limited to:
  • EPA's Climate Pollution Reduction Grants
  • EPA's Greenhouse Gas Reduction Fund
  • EPA's Clean Ports Program

The Success of the IRA

The IRA dedicated about $70 billion - out of its $370 billion investment - to grants for state, tribal, local governments and private entities. By January 2023, within months of becoming law, 77 percent of IRA grant funding had been launched, and approximately 73 percent of launched programs were awarded, allocated, or pending selection. Since then, the IRA has led to the following investments:

• In 2023, 3.4 million Americans benefited from $8.4 billion in IRA tax credits to lower the cost of clean energy and energy efficiency upgrades in their homes. The tax credits' popularity significantly outpaced projections in the first year they were available.
• Since January 2024, more than 250,000 Americans have claimed the IRA's electric vehicle tax credit, saving them about $1.5 billion total. Most buyers claimed the incentive at the point of sale.
• The Biden-Harris Administration announcedthat companies have invested over $265 billion in clean energy across nearly every state, with many of these investments taking place in underserved communities. These investments are creating over 330,000 new jobs in the United States.

The IRA Forum

The Office of Sustainability has been closely tracking IRA funding opportunities and conducting a quarterly IRA Forum with City officials, community-based organizations, and funders to strategize about applicable funding; matchmake interested entities and organizations; and report on the City's collective success in securing funding. The City, through various departments, has been awarded $33million in grant funds to date, with tens of millionsof dollars in applications still pending or in development. In addition, the Division of Energy and Climate Solutionsis providing assistance to departments to maximize funding for capital projects through the IRA's Direct Pay program.

To join the IRA Forum and receive updates, please contact Dominique Smiley, Program Manager of Grants Management & Technical Assistance, at [email protected].