Maximizing Inflation Reduction Act Federal Funding For Hawai'i
But these game-changing initiatives will ultimately only be as effective as they are fully understood and implemented all the way down to our local communities. For my part, this means assuring that I track each of the hundreds of federal programs through which the funding will be distributed and assure that my government and community partners throughout Hawai’i are fully aware of these opportunities and fully seek and obtain the funding.
We are doing all of this on the IIJA with our state and county government partners, through which the vast majority of the funding will be obtained and distributed. The IRA funding is much more broadly available, to communities and individuals, and so here I provide more information on the IRA and such opportunities as well as how I can help maximize related federal assistance to Hawai’i.
IRA Federal Funding Programs
The provisions of the IRA that address climate change prevention and mitigation and energy transformation invest some $369 billion in clean energy, increase renewable energy production, lower energy costs and our dependency on imported oil, and reduce national emissions to 40% below 2005 levels by 2030. This will help our Hawai‘i achieve its goal of 100 percent clean energy by 2045.
This downloadable spreadsheet includes a list of the IRA federal funding available to state and county governments and non-profit organizations to implement these initiatives. It details who is eligible and in as much detail as currently available, information on how to apply. Based on the latest information available to my office, the IRA has roughly 135 programs, including 45 major competitive grant programs, that will be administered by a dozen federal agencies. My office will update this spreadsheet as I identify new funding opportunities available to our Hawai‘i.
If you need assistance in understanding and applying for funding from these programs or a letter of support for your application, please contact my Honolulu office at (808) 650-6688.
Tax Credits and Rebates for Individuals
The IRA creates, extends and expands many key tax incentives that will give Hawai‘i families the long-term certainty they need to affordably invest in clean energy, household efficiency improvements and zero emissions vehicles. Federal agencies, especially the Internal Revenue Service, are now working to implement the law. For the latest information, please check the White House’s IRA website at https://www.whitehouse.gov/cleanenergy/.
For individuals who want to purchase zero emissions vehicles, the IRA create $4,000 tax credits for lower and middle income individuals to buy used clean vehicles and up to $7,500 tax credits to buy new clean vehicles. As explained in this Congressional Research Service report, most of these tax credits are effective starting in 2023.
For homeowners, the IRA appropriates $9 billion for residential energy efficiency and electrification financial assistance programs. The electrification rebates supports consumers on a wide range of projects, including replacing appliances, adding insulation and upgrading in-home electrical delivery systems. As explained in this Congressional Research Service report, much of this program will be managed at the state level. I will post more information on this webpage as the rebate program is set up.
Health Care Provisions
The IRA further includes $370 billion to lower health care and prescription drug costs for our families and kupuna. It does so partially by creating a yearly cap $2,000 cap on out-of-pocket Medicare prescription drug costs starting in 2025. It also directs the government to negotiate prices with manufacturers to help lower the price of individuals drugs. Please click here to review answers to frequently asked questions about these provisions.
The bill also makes targeted changes to Medicaid, the State Children’s Health Insurance Coverage Program and private health insurance to help lower costs and expand access to care. Please download this Congressional Research Service report to learn more about these changes.
For any questions on the IRA and IIJA and how we can assure the maximum benefit to our Hawai’i, please email me at email@example.com or call my Honolulu office at (808) 650-6688.