Applying for these funds depends on the type of business you are aiming to either startup or transform.
Do you own a commercial building? Are you a business owner committed to clean energy, construction, transportation or are targeting low-income communities? This act can provide a portion of the needed funds for you.
Former President Joe Biden passed the Inflation Reduction Act in August 2022. The Inflation Reduction Act is a “downpayment on deficit reduction to fight inflation, invest in domestic energy production and manufacturing and reduce carbon emissions by roughly 40 percent by 2030 while allowing negotiation for prescription drug prices”. It invests roughly $300 billion dollars in Deficit Reduction and $369 billion in Energy Security and Climate Change Programs for over the next ten years.
Its implications are grand, the IRA is practically a free electric bank account, given to taxpayers who aim to go electric, by changing any machines that burn fossil fuels to be replaced by renewable energy. Through direct pay and clean energy tax credits any taxpayer is able to receive funds for converting their business’s machines into renewable energy tools, further contributing to the environment and your wallet.
Applying for these funds
Applying for these funds depends on the type of business you are aiming to either startup or transform. Since this act is spread throughout different departments and grants, it does not have a single application portal, yet can be received or applied to in 4 different ways: The first being through tax credits. “A total of $10 billion has been allocated for the credits under the Inflation Reduction Act”, You can claim IRA tax credits when you file your business taxes using IRS form. If you buy an electric vehicle or solar panels, save receipts, installation certifications and energy rates, let your accountant know to help you file an IRS form 3468 or Form 8936 varying by credit. Or apply through the Department of Energy. The second method is via federal grants or loans. The DOE(Department of Energy), EPA(Environmental Protection Agency) and the US Department of Agriculture are some of the agencies that offer grants. Thirdly, the IRA has passed many of its aid through states and municipalities. We suggest you look at your state’s energy office or small business office for more information. There are also websites that allow you to search incentives by ZIP code that can aid your search.
The Small Business Development Centers(SBDCs), The Minority Business Development Agency, and the Hispanic Chamber of Commerce are organizations that can further inform you how to navigate the application process.
For Businesses Located within Commercial Buildings: Section 179D is for you. The Energy Efficient Commercial Buildings Deduction is a tax deduction of up to 5$ per square foot for improving systems like: Building automation and controls, insultation and windows, interior lighting and HVAC. Work with an energy consultant or contractor who can attest that your renovation satisfies the necessary efficiency threshold. Then, when you file your business taxes, your accountant can then claim the deductions.
For Clean Energy, Construction, Transportation Businesses: Apart from the Energy Efficient Commercial Buildings tax (Section 179D), you can also claim section 45L on your taxes as well if you provide engineering, architecture or energy auditing services. There are also many grants and DOE programs, as well as workforce and apprenticeship funding provided by the IRA act for your business.
For Businesses Targeting Low- Income Communities: For those aiming to receive funds for low income communities, the OEJECR (Office of Environmental Justice and External Civil Rights) has received over 2,700 applications requesting more than $40 billion in funding for the Community Change Grants Program. Due to a high number of applications, the grant has been paused in making any additional selections until “all the remaining applications are evaluated” which is hopeful given there are still 7 years present. This is the perfect opportunity to begin planning until the grant application opens once more.
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References
“Build Back Better Act.” Ballotpedia, https://ballotpedia.org/Build_Back_Better_Act. Accessed 4 Aug. 2025.
Build Back Better Act | Congresswoman Jan Schakowsky. 21 Nov. 2021, http://schakowsky.house.gov/build-back-better-act.
US EPA, OA. Community Change Grants Selections. 23 Jul. 2024, https://www.epa.gov/inflation-reduction-act/community-change-grants-selections.
US EPA, OAR. Summary of Inflation Reduction Act Provisions Related to Renewable Energy. 21 Nov. 2022, https://www.epa.gov/green-power-markets/summary-inflation-reduction-act-provisions-related-renewable-energy
