Clean Energy Tax Provisions
Inflation Reduction Act
The Inflation Reduction Act of 2022 aims to lower energy costs, increase cleaner production, and reduce carbon emissions by 2030. These goals will be achieved through several tax provisions, including tax credits and loan programs.
More information on key tax provisions for industries can be found to the right.
Federal Tax Provisions
- Production Tax Credit for Electricity from Renewables
- Investment Tax Credit for Energy Property
- Zero-Emission Nuclear Power Production Credit
- Clean Electricity Production Tax Credit
- Clean Electricity Investment Tax Credit
- Advanced Energy Project Credit
- Advanced Manufacturing Production Credit
- Clean Hydrogen Production Tax Credit
- Energy Efficient Commercial Buildings Deduction
- Cost Recovery for Qualified Facilities, Qualified Property, and Energy Storage Technology
DOE Grant for Manufacturers
Modernize and Improve Energy Efficiency, Enhance Cybersecurity, and Increase Productivity
The Industrial Training and Assessment Centers Implementation Grant Program is designed to help small- and medium-sized manufacturers (SMMs) implement recommendations made in Industrial Training and Assessment Center or Onsite Energy CHP-TAP assessments since 2018, and recommendations made in assessments that DOE has deemed equivalent may be eligible.
These grants will bolster the U.S. manufacturing base by making grants available to support projects that modernize SMMs’ facilities with improved energy and material efficiency, enhanced cybersecurity, and increased use of smart and advanced manufacturing technologies to reduce waste and pollution, while increasing productivity.
Grant awards are up to $300,000 per manufacturer (covering one or multiple projects), at a 50% cost share (i.e., if a project costs $50,000, an implementation grant can cover up to $25,000). Other federal funds cannot count toward the applicant’s share.
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Inland SoCal for Advanced Manufacturing
A National Department of Energy Initiative to Attract Clean Energy Manufacturers in Southern California
The Inland SoCal for Advanced Manufacturing initiative led by Blended Impact is comprised of a consortium across economic development, education, research institutions, trade organizations, local and state government, labor, and nonprofit community benefit organizations all focused on increasing economic development activity in the two-county footprint of Inland Empire, California by attracting at least one clean energy manufacturer during the 2024-2025 period.
The consortium is working to grow a clean energy hub in Inland Southern California and have a range of programs and incentives to help you expand.
Advanced manufacturing companies can take advantage of the following incentives:
- Free technical assistance and additional resources from partner organizations including incentive navigation and site selection assistance.
- Robust State of California incentives including potential tax credits and grants
- Up to $25,000 in expansion assistance to qualified companies
- Opportunity to participate in In SoCal Accelerate Hub programs for statewide recognition.
- Opportunity for national recognition as part of a DOE initiative
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Bipartisan Infrastructure Law
Infrastructure Investment Jobs Act (IIJA)
The Bipartisan Infrastructure Law, officially known as the Infrastructure Investment Jobs Act (IIJA), is a landmark legislation that represents a significant federal investment on rebuilding America’s competitiveness and infrastructure through a wide range of projects. A huge allocation in the investment is dedicated to upgrading the country’s power infrastructure and funding new programs to support the deployment of clean energy technologies, accelerating our transition to a zero-carbon emission economy.
Click the link below to visit the Department of Energy’s website and view all available solicitations and funding opportunities relating to clean energy.
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Good Jobs in Clean Energy Prize
Expanding opportunities for accessible, good jobs in clean energy and diversity in the workforce.
The Good Jobs in Clean Energy Prize encourages communities across the nation to build coalitions that focus on creating well-paying jobs and fostering an equitable, inclusive workforce in clean energy sectors.
Each coalition must include at least one representative from the following five key stakeholder groups to qualify:
Labor organizations
Clean energy employers
Community-based organizations
Public agencies
Education and workforce providers
Qualified coalitions will have the chance to win part of $3,375,000 prize pool to help them develop plans and accelerate the implementation of their solutions.
Submission deadline will be on January 31, 2025, 2 pm.
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California Energy Commission
Energy Partnership Program
The California Energy Commission’s Energy Partnership Program assists in implementing energy-saving solutions for buildings and new construction projects with the goal of reducing energy costs.
This program offers technical support by covering up to $20,000 of consulting fees with experienced engineering and architectural consultants. The cost of a study depends on the facility size, type, and scope of the project. If the cost of the study exceeds $20,000, the applicant may opt to share in the cost or reduce the scope.
Applicants from the following agencies are eligible to apply:
Cities
Counties
County Offices of Education
Special districts
Public hospitals
Public care facilities
Public Colleges or Universities
The program is continuously open with no final filing date. However, program funds are limited, so filing promptly helps increase the chance of receiving assistance. Applications are accepted on a first-come, first-served basis.
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California Competes Tax Credit
Income Tax Credit
The California Competes Tax Credit (CCTC) is an income tax credit available designed to attract businesses that want to locate in California or stay and grow in California. Administered by the Governor’s Office of Business and Economic Development (GO-Biz), this incentive is available for businesses of any industry, size, or location compete for over $180 million available in tax credits by applying in one of the three application periods each year.
For fiscal year 2024-2025, GO-Biz will accept applications for the California Competes Tax Credit during the following periods: January 6, 2025 – January 27, 2025 & February 24, 2025 – March 10, 2025.
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Sales and Use Tax Exclusion (STE) Program for California Manufacturers
Incentives for cutting-edge companies in alternative energy and advanced transportation
The STE Program offers tax exclusions for California manufacturers purchasing products, components, or systems, helping to reduce costs and promote innovation. Administered by the California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA), the program supports the state’s mission to incentivize cutting-edge companies in alternative energy and advanced transportation. These businesses drive economic growth by creating tens of thousands of high-paying, permanent jobs. The program is authorized through 2025.
Application Periods:
Applications must be submitted by noon PT on the last day of the following periods:
• December 13, 2024 – January 30, 2025
• June 27, 2025 – July 11, 2025
• September 26, 2025 – October 10, 2025
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California Sustainable Energy
Entrepreneur Development Initiative (CalSEED)
The California Sustainable Energy Entrepreneur Development Initiative (CalSEED) provides crucial funding and support to innovators and entrepreneurs aiming to bring early-stage clean energy concepts to market.
CalSEED focuses on helping early-stage entrepreneurs develop projects that address clean energy, efficiency, and storage needs, with a strong emphasis on equity. The initiative ensures that these technologies are designed to benefit California's most vulnerable populations.
About CalSEED
As the first step in California’s innovation pipeline, the program incubates energy concepts and readies them for investment and deployment by providing:
Targeted professional development services including mentorship with seasoned professionals, legal counsel, expert guidance, and training to support technology refinements, market development, and commercialization.
Direct, non-dilutive grant-based funding to advance clean energy innovations to commercialization ($200K for Concept Awards, and a $500K Prototype Award to winners of the annual Business Plan Competition).
Access to key accelerator and incubator programs and test facilities.
Enhanced access to private capital.
CalSEED is open to applications from individuals, businesses, and nonprofits working on early-stage innovations, ranging from initial concepts to basic prototypes. The program specifically targets hardware, software, or integrated solutions that are at Technology Readiness Levels (TRL) 2-4, as defined by the U.S. Department of Energy.
Self-Generation Incentive Program
Supporting Businesses with Rebates
The Self-Generation Incentive Program (SGIP) supports businesses with rebates for installing energy storage technology at non-residential facilities. These storage technologies include battery storage systems that can function during a power outage.
The “Equity” and “Equity Resiliency” SGIP rebates lower the cost of energy storage technology to almost, if not completely, free of cost.
Depending on which category a customer is eligible for, they can receive $850 per kilowatt hour under the “Equity” Category or $1,000 per kilowatt-hour under the “Equity Resilience” Category. These rebate amounts can cover most, if not all, of the costs associated with installing an energy storage system.
About SGIP
Local Program Administrators are conducting robust outreach on SGIP in Riverside County. Depending on your utility provider, reach out to the local program administrator to learn more about eligibility and incentive levels:
- Southern California Edison (SCE)
- Website: www.sce.com/SGIP
- Email: [email protected]
- Southern California Gas Company (SoCalGas)
- Website: www.socalgas.com/for-your-business/power-generation/self-generation-incentive
- Email: [email protected]
Contact Us
Kimberly Wright
Economic Development Manager
Riverside County Office of Economic Development
Email: [email protected]