Inflation Reduction Act or IRA is the talk of the town in the financial world. The $1.2T IRA spending bill is making headlines globally. While it can be daunting to understand the nitty-gritty of this large-scale spending bill, we have got you covered. This blog post will provide you with insights on the 114 entries in the bill and help you understand what’s in there for you.

Firstly, it is essential to understand that the IRA funds cover a wide spectrum of entities. The bill’s primary focus is on clean tech innovation and rebuilding the old infrastructure. Mechanisms like grants, loans, loans with forgiveness, and direct spend are used to fund the projects.

Secondly, what is interesting to us is the creation of the “Green Bank” via the DOE LPO loan guarantees. We have already written about it previously, and the creation of this national “green bank” seems like an effective way to promote sustainable finance and energy projects.

Other notable initiatives include investing in more resilient energy infrastructure, promoting offshore renewable energy, and incentivizing energy-efficient upgrades.

Here are the top 5 initiatives that stood out for us based on our informal criteria:

Creation of the National Green Bank via DOE LPO Loan Guarantees
$1B investment in advanced nuclear power
$40B for upgrading and modernizing ports
$27B for natural disaster mitigation and infrastructure upgrades
$7.5B for EV charging infrastructure

Here’s how old friend Cory Hewitt, Founding Partner of NextGen Venture Partners, put it…

lol $1.2T in IRA (inflation reduction act) spending. Here is my cheat sheet on the 114 entries.
($T = Trillion… I remember when B = Billion felt like a big word)

I summarize my observations below and bullet point the ones that are interesting to me, based on no formal criteria. Notable to me is the effective creation of a national “green bank” via DOE LPO loan guarantees (which I’ve written about before).

IRA funds cover spectrum, sometimes inc. magic words “eligible entities” for non-profit and for-profits. Uses mechanisms like grants, loans, loans with forgiveness, and direct spend. List below includes dual focus on clean tech innovation and retro’ing old infrastructure. My list is about $35B of the initiatives.

– Energy Infrastructure Reinvestment Financing; $5B (retro fossil fuel facilities etc to electric).
– Enhanced Use of Defense Production Act of 1950; $250M (grants for heat pump related).
– Funding for U.S. Department of Energy (DOE) DOE Loan Programs Office; $3.6B (Loan Guarantees; essentially a national “green bank”).
– Greenhouse Gas Reduction Fund:
— National Clean Investment Fund; $14B (clean tech, and allows 2-3 grants to non-profits),
— Solar for All Program; $7B (solar, up to 60 grants to states, tribes, non-profits).
– Implementation of the American Innovation and Manufacturing Act; $38.5M (grants to pretty much any legit entity).
– Low Emissions Electricity Program; $87M (direct spending).
– Powering Affordable Clean Energy (PACE); $1B (loans, inc. some forgivable).
– Rural Energy for America Program (REAP):
— General fund; $1.7B (loans and grants),
— Underutilized Renewable Energy Technologies; $303M (loans and grants).

Hello lots of spending for new energy, build-tech, clean-tech etc!


However, it is worth noting that there are several other small initiatives for specific sectors, including aviation, water, and broadband access. The bill covers a vast scope, from reducing air pollution to developing sustainable infrastructure. Therefore, there is something in it for everyone.

In conclusion, it’s hard to miss the $1.2T IRA spending bill and the impact it will have on the economy. The bill focuses on promoting clean energy and rebuilding the old infrastructure, which is the need of the hour. The creation of the Green Bank via DOE LPO Loan Guarantees stands out as a promising initiative along with several others. The bill also covers specific sectors, including water, aviation, and broadband access. We hope our cheat sheet helps you understand the bill’s key highlights and how it may benefit you in the long run.