The Inflation Reduction Act

 

The Inflation Reduction Act (IRA) is the single largest investment in climate change and energy in American history.

It allocates $369 billion to over 100 new and existing programs to expand access to clean energy, reduce pollution, advance environmental justice, support our island’s resilience to climate hazards, and more.

The City and County of Honolulu encourages residents to take advantage of this historical federal legislation to support our island’s climate action and affordability goals. This page consolidates the most updated information to help navigate what’s in the Inflation Reduction Act and how it can benefit you. Whether you’re looking to make energy efficiency upgrades or draw down money to support your organization’s mission - there is something in the IRA for everyone.

 

Check out the funding opportunities!

Click the buttons below to learn more:

$25 million for climate adaptation and resilience activities that serve the Native Hawaiian community and keep our island safe from climate impacts

$198 billion for clean energy tax credits to expand access to affordable renewable energy that lowers emissions and energy bills over time

$26 billion for conservation, forestry and climate-smart agricultural practices that steward the land

Testimonial: Oʻahu Resident Purchases Electric Vehicle & Solar Panels with Help of IRA

Testimonial from Abraham, a resident of Leeward Oʻahu.

  • I invested in a solar panel system for my home and purchased an electric vehicle. Federally, I qualified for the Residential Clean Energy Credit and the Clean Vehicle Credit. In addition, I qualified for the State of Hawaiʻi Department of Taxation: Renewable Energy Technologies Income Tax Credit.

  • I chose to make this investment to reduce my carbon footprint, lower my energy bills, and increase the value of my home. I was increasingly concerned about the rising electricity costs and future rate hikes. Solar panels also provide an added layer of security by ensuring a continuous power supply even during electricity outages which is something we can all relate to with recent outages and the Hawaiian Electric Public Safety Power Shutoff (PSPS) program for wildfire prevention that involves temporarily turning off the power to certain high-risk areas during extreme and potentially dangerous weather conditions.

  • The tax credit made the investment more affordable and provided a financial incentive to support clean energy initiatives.

    • Step 1: Research and select a reputable solar panel provider. The solar panel company provided detailed information on the process.

    • Step 2: Schedule a consultation to assess the feasibility and cost of installation.

    • Step 3: Sign a contract and schedule the installation.

    • Step 4: Complete the installation and ensure everything is up to code.

    • Step 5: Gather all necessary documentation (receipts, installation reports).

    • Step 6: File for the tax credit.

  • I wish I had known more about other federal/state programs or incentives that could cover the total cost of a solar panel system. My advice is to thoroughly research all available incentives and ensure you have a clear understanding of the financial and logistical aspects of the investment.

    Embracing clean energy is a worthwhile endeavor that benefits both the environment and your wallet. It’s important to stay informed and take advantage of the resources and incentives available to support these investments.

IRA Resources

Additional IRA Webpages

 

Please note, information on the Inflation Reduction Act is constantly evolving. This page will be continuously updated as more information is released.