The 2025 federal budget significantly curtails the availability of clean energy tax credits and deductions, a stark pivot in federal energy policy. Solar, wind, energy efficiency and electric vehicles saw the biggest changes.
Even with shifting federal priorities Dane County remains steadfast in its commitment to an equitable clean energy transition. The Office of Energy & Climate Change remains dedicated to our climate priorities regardless of shifting federal priorities.
Read more details about how tax credits and incentives will changes for individuals, businesses, and nonprofits.
The 2025 federal budget significantly curtails the availability of solar and other clean energy tax credits and deductions, a stark pivot in federal energy policy. Solar, wind, energy efficiency and electric vehicles saw the biggest changes. Click our Updates on Status of Federal Funding to read the latest budget summary.
Federal Funding Opportunities
The Inflation Reduction Act (IRA) has spurred significant activity in Wisconsin's clean energy sector, driving both investment and job creation. At least 82 clean energy projects in Wisconsin have so far been eligible for IRA incentives, signaling a substantial shift towards renewable energy deployment across the state. This has translated into over 2,500 new jobs in the clean energy sector, particularly in areas like solar installation, wind energy development, and energy efficiency upgrades. With this investment, Wisconsin now supports more than 73,000 clean energy jobs.
The availability of these incentives has helped to attract private investment, boosting the state's clean energy economy. To date in Wisconsin, the IRA has generated more than $5.4 billion in investments in climate and clean energy, an over 50% increase since 2022.
Check out the success stories to see the local impact of IRA federal funds in action across Wisconsin and learn about how the federal investments are helping Wisconsin communities, schools, businesses, and residents. Below you can read more about Direct Pay and it's impact in Wisconsin and across the midwest!
The climate crisis is inherently inequitable because those who suffer the most from climate disasters are often the ones who contribute the least to our climate crisis. Recognizing that, the Biden Administration set a priority that 40% of the overall benefits of certain Federal investments are allocated to communities that were historically underserved or disproportionately impacted by climate change.
President Trump revoked Biden's Justice40 priorities, which means that the federal goverment is no longer encouraging increased investment in underserved communities.
Locally, in the 2020 Dane County Climate Action Plan, we committed to environmental justice, to ensuring that all members of our community benefit from the transition to a clean energy economy. Our commitment remains.
Direct pay (elective pay) in the Inflation Reduction Act lets tax-exempt and government entities receive payments equal to full tax credits for clean energy projects. While many in the Midwest have used it, it's not as straightforward as grants. This map shares Midwest success stories across sectors, offering inspiration and justification for how direct pay can benefit your organization or constituents. Feel free to explore it and visit the Midwest Climate Collaborative site to learn more!
Email us with questions about how your business or organization may be able to benefit from the Inflation Reduction Act.
Information provided above is meant as an overview of eligible tax credits; all information given should be utilized in conjunction with a tax professional. It does not constitute professional tax advice or other professional financial guidance and may change based on additional guidance from the Treasury Department.
