U.S. Department of the Treasury

By Rachel McCleery, Senior Advisor, IRA Program Office

The Inflation Reduction Act (IRA) is the largest investment in the U.S. economy in a generation, and much of that investment is through clean energy incentives that flow through the tax code. To support its implementation, the IRA Program Office has been listening to and learning from stakeholders about how U.S. Department of the Treasury (Treasury) and the Internal Revenue Service (IRS) clean energy regulations are operating in the real world. 

Since the IRA Program Office opened its doors in 2023, Treasury officials have either led or participated in over 100 convenings, webinars, tours, and events.

Those engagements have reached state and local officials ^[1] , car dealers, union workers ^[2] , apprentices, faith leaders, heads of nonprofits, small business owners, auto suppliers, consumers ^[3] , and many, many more.  A large part of this work has involved interagency partnerships. Treasury joined the Thriving Communities Network ^[4] earlier this year and continues to tap a multitude of federal agencies to leverage the technical expertise, networks and knowledge required to educate taxpayers in all corners of the country.

In just over a year, the IRA Program Office has traveled to 33 U.S. states plus Puerto Rico to discuss nearly two dozen clean energy tax provisions. 

We’ve facilitated virtual presentations with many others. 

Among many things, the IRA created or modified federal tax credits for new and used vehicle purchases ^[5] and the production of ^[6] or investment in^[7] clean energy manufacturing. Credit bonuses are also available for clean energy construction projects that pay workers prevailing wage and use registered apprentices.   As a result, outreach efforts have in part focused on car dealers, unions, manufacturers and suppliers.

Partnering with public, private, and nonprofit entities to build relationships and engage in an ongoing educational dialogue with taxpayers has been fundamental to the IRA Program Office’s stakeholder engagement strategy. This strategy is being implemented across state and local governments, nonprofits, consumers, and historically disadvantaged communities in addition to dealers, unions, manufacturers, and suppliers. A consistent, synchronized engagement effort will continue to be critical as IRA regulatory implementation moves forward.

Car Dealers

The IRA allows for customers to reduce the up-front cost of a clean vehicle purchase ^[8] at the time of sale instead of waiting until the next tax filing season. This statutory modification required participating car dealers to register with the IRS through an entirely new system called IRS Energy Credits Online ^[9] . In partnership with the National Auto Dealer Association (NADA), the IRA Program Office led a series of webinars that drew thousands of dealerships from across the country. Additionally, Treasury and IRS officials traveled to Nevada for a dealer workshop on the new and enhanced clean vehicle tax credits. Throughout these engagements and others, Treasury and the IRS were able to offer ongoing operational assistance and help dealers navigate this new process. One dealer shared with his peers that, “the IRS made working with the [new EV tax credit] really easy.” Another said that their experience with IRS Energy Credits Online was “flawless.” 

Over 14,000 car dealers have registered with IRS Energy Credits Online since it launched in January. This has allowed consumers to save more than $1.5 billion in upfront costs on their purchase of more than 225,000 clean vehicles. Dealer, seller, and advocacy group feedback received through roundtables, listening sessions and office hours have been instrumental to dealer participation.

Organized Labor 

The IRA also applied prevailing wage and apprenticeship (PWA) requirements to clean energy construction jobs for the very first time. Treasury—in close partnership with the Department of Labor (DOL)—recently finalized these rules ^[10] , which create an unprecedented opportunity for union workers to lead the clean energy workforce. A recent report by Heatmap ^[11] said the IRA could, “go down as one of the most important labor laws of recent history.” 

Earlier this summer, Deputy Secretary Adeyemo and Acting Department of Labor Secretary Julie Su visited ^[12] Sheet Metal, Air, Rail and Transportation Workers (SMART) Local 40 Joint Apprenticeship Training Center in Philadelphia to speak about the new regulations. One apprentice shared that the Local 40 program would lead to financial stability for him and his family. This financial security will be accessible to more workers as the prevailing wage and apprenticeship requirements lead to an increase in good-paying clean energy construction jobs. 

Treasury continues to work with the Department of Labor on promoting these new labor rules through tours, workshops, webinars and presentations. Treasury, IRS ^[13] , and DOL ^[14] have created an extensive set of tools and resources for unions, contractors and subcontractors to better understand the impact of this new provision. 

Manufacturers and Suppliers 

New and modified tax credits like the Advanced Manufacturing Production Credit ^[15] and the Qualifying Advanced Energy Project Credit ^[16] incentivize companies to onshore America’s clean energy supply chains.  The Motor & Equipment Manufacturers Association (MEMA) hosted the IRA Program Office ^[17] for a roundtable in Fowlerville, Michigan this summer to talk about how small and midsized suppliers can benefit directly and indirectly from these provisions . 

By teaming up with DOE’s Office of Manufacturing and Energy Supply Chains (MESC) ^[18] and the Interagency Working Group (IWG) on Coal and Power Plant Communities and Economic Revitalization ^[19] , Treasury has been able to provide a more comprehensive view on how the IRA’s manufacturing tax incentives fit with other federal grant and loan programs. That included participating in an IWG Illinois Coal Basin workshop ^[20] in Evansville, Indiana this spring. 

Treasury has also worked with the Diverse Manufacturing Supply Chain Alliance (DMSCA), National Minority Supplier Development Council (NMSDC), Alliance for Automotive Innovation (AAI), National Association of Manufacturers (NAM), and others to host virtual and in-person engagements for Treasury and Department of Energy (DOE) officials to inform and educate stakeholders about these new clean energy tax credits.