SCRANTON, LACKAWANNA COUNTY (WBRE/WYOU) — Scranton was chosen on Friday as one of 150 cities to transition the U.S. into a new era of clean energy.

As new financing tools and clean energy tax incentives were brought on by President Joe Biden’s Inflation Reduction Act (IRA), Scranton and other cities like it are in a position to “build-out” the United States’ clean energy economy.

In March, Scranton Mayor Paige Cognetti welcomed thirty Treasury and Commonwealth of Pennsylvania officials who sought to get the word out about new clean energy incentives.

The focus of this meeting was to ensure that community members know how the IRA’s elective pay provisions (also known as “direct pay”) can help propel a clean energy transition, transform communities, create new jobs, and help save money.

The IRA created a tax credit delivery tool known as direct pay. Through that tax credit, tax-exempt organizations, and governments can receive payment equal to the full value of the tax credits when they build qualifying clean energy projects.

Similar meetings were held across the Commonwealth in cities such as Wilkes Barre, Reading, York, Lebanon, Harrisburg, and State College.

Governor Josh Shapiro’s team, worked with local government and non-profit leaders to organize these IRA information sessions. These sessions are the first steps to launch U.S. Treasury Secretary Janet Yellen’s commitment to reach out to 150 cities where citywide poverty is at or above 20 percent, there is a history of population decline, and there are 20,000 or more residents.

IRA is driving clean energy investments and job creation across the country. President Biden’s Administration is committed to making sure those investments reach the places that need them the most and that commitment has produced the following results:  

  • 69 percent of clean energy investments announced since the IRA was passed have been in counties where the employment rate is below the national average. 
  • 75 percent have been in counties where the average household income is below it. 
  • 84 percent have been where college graduation rates are below the national rate. 

Due to direct pay, those who generally don’t pay Federal income tax such as state and local government and many non-profit organizations can access tax credits to help pay for clean energy investments from EV charging stations to geothermal plants.

Direct pay is a new concept, especially for local governments, and awareness is growing but, many still aren’t yet aware of it.

Because of this, the Treasury is reaching out to 150 cities in the next six months, cities that are in different stages when it comes to their economic comeback.

As word of direct pay grows, it will make a huge impact on communities as the nation works to fully transition to clean energy.

For more information visit the Department of Treasury’s website.