With November elections drawing near, the Biden Administration is racing to cement its domestic policy achievements, notably key provisions of the Inflation Reduction Act (IRA) – a multi-billion-dollar federal clean energy, climate and domestic manufacturing legislation signed into law on August 16, 2022.

With significant IRA provisions still awaiting formal guidance and implementation, several IRA programs and incentives are at risk of significant delays or full repeal if Republicans retake control of Congress and/or the White House.

In late 2022, the Biden Administration began releasing agency guidance, funding announcements, Notices of Proposed Rulemaking and notices of funding opportunity (NOFOs) to further define program parameters for entities seeking access to the IRA’s historic tax incentives and federal funding opportunities. State and local governments, and various industries are eager for the White House to publish final guidance and implement numerous IRA programs, many of which have been delayed for over a year. Even so, eligible entities have capitalized on current IRA programs that direct funding and tax incentives to manufacturing projects, rural energy projects and major climate planning programs. Looking ahead, stakeholders can expect IRA implementation to accelerate over the summer as the Biden Administration looks to put the historic funding into action and guard against future challenges to the IRA’s provisions.

IRA implementation has not been without criticism, foreshadowing potential challenges for IRA programs and initiatives. Industry and independent groups have expressed concern over delays in implementing key IRA provisions, including tax incentives for clean fuels, clean hydrogen and low demand for clean energy technologies receiving IRA incentives, such as electric vehicles (EV). Congressional Republicans and key IRA sponsor Senator Joe Manchin (DWV) have also criticized the Biden Administration’s guidance on critical minerals and foreign entities of concern amid broader congressional concerns over supply chain resilience and economic reliance on China, and as recently as June 13, former President Donald Trump vowed to completely reverse the Biden Administration’s EV mandates before a group of Republican Members of Congress.

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