Philadelphia and Pennsylvania are set to significantly benefit from the Inflation Reduction Act (IRA) of 2022, a landmark federal investment in clean energy, climate action, and environmental justice.
Two years since its enactment, the IRA has allocated over $700 million in funding, incentives, and financing for climate initiatives across the region.
As of December 2024, Philadelphia agencies and organizations have been awarded over $55 million through seven IRA programs, including EPA’s Climate Justice Community Change Grants, USDA’s Urban and Community Forestry Grants, and DOE’s support for zero-energy building codes.
Additionally, the region encompassing Philadelphia and Pennsylvania stands to access $685 million from initiatives like EPA’s Greenhouse Gas Reduction Fund and the Clean Ports Program.
Nationwide, the IRA has quickly delivered results. By January 2023, 77% of its $70 billion in grants had been launched, and 73% had been awarded or allocated within months.
In 2023, 3.4 million Americans received $8.4 billion in tax credits for home clean energy upgrades.
The IRA’s electric vehicle tax credit has also gained traction, saving 250,000 Americans $1.5 billion since January 2024.
The Biden-Harris Administration highlights the IRA’s economic ripple effects, with over $265 billion invested in clean energy projects across nearly every state.
The investment has spurred the creation of 330,000 jobs, many of which are in underserved communities.
In Philadelphia, the Office of Sustainability leads efforts to maximize IRA opportunities through its quarterly IRA Forum.
This initiative connects city officials, community groups, and funders to strategize and secure funding.
The city has already received $33 million in grants, with additional applications in progress.
The Division of Energy and Climate Solutions supports these efforts by guiding departments in utilizing the IRA’s Direct Pay program for capital projects.
The IRA continues to shape a cleaner, more sustainable future for Philadelphia, Pennsylvania, and the nation.
