Nebraska has benefited from the Inflation Reduction Act

The targeted investments of the Inflation Reduction Act have real-world impacts that are hard to ignore. Since its passage in August 2022, the IRA has been quietly bringing tangible benefits to Nebraska's farms, public schools, small businesses and families.

In July 2024, Nebraska's Department of Environment and Energy was awarded $307 million in IRA funding to implement measures outlined in the state's priority action plan. These funds will assist Nebraska producers in implementing advanced livestock waste management, precision agriculture, regenerative practices and installing solar energy systems.

The Rural Energy for America Program received increased funding through the IRA. In 2023, 88 REAP applications totaling $7,008,031 were received for Nebraska, a funding request 20 times higher than the $337,684 ultimately awarded for 26 REAP projects. The heightened interest across the nation caused applications requesting up to a 50% grant to be paused in December and reinforces the need for this beneficial program.

In August 2024, Sandhills Energy (SE Municipal Solar LLC) was selected to receive nearly $30 million in Powering Affordable Clean Energy financing, which offers low-interest, partially forgivable loans for energy improvements. Sandhills Energy will build eight solar generation facilities, totaling 18.72 megawatts of new electric capacity, in Alliance, Gering, Sidney, Imperial, Ansley, Pender, Crete and Stuart.

Hastings Public Schools applied for a direct pay credit, a provision in the IRA that enables tax exempt entities to recoup a percentage of the costs of energy saving projects. The school installed a geothermal heating and cooling system which cost about $3.6 million, with an estimated $1.1 million eligible for direct pay. The geothermal system is anticipated to save the school between $75,000 and $100,000 annually.

These investments are creating stronger farms, improving local economic stability, and providing ways for schools to save money when budgets are tight. The IRA's impact on Nebraska is visible in everyday life, helping to ensure a resilient, prosperous future for the state's rural communities.