Press Release

The Indiana Municipal Power Agency (IMPA) received approximately $15.7 million of tax credit benefits plus interest through the Inflation Reduction Act for its work to develop renewable energy resources for its 61 municipal members. Since 2014, the Agency has constructed 51 solar projects throughout Indiana to serve the power needs of its member communities. Prior to passage of the Inflation Reduction Act (IRA), tax-exempt and governmental entities were unable to directly claim investment tax credits (ITC) to help offset renewable energy capital project costs. Historically, IMPA worked with third-party investors to access a smaller portion of the ITC benefits for many of the solar projects the Agency constructed to serve Member load. While the partnership with investors resulted in improved value for the Agency’s member communities, IMPA had to share a significant portion of the ITC benefit with the investors. With the passage of the IRA in 2022, tax-exempt and governmental entities may now directly receive the full value of the ITC for construction of renewable energy projects that meet qualifying requirements. Following passage and implementation of the Elective Pay ITC provisions in 2022, IMPA constructed seven solar projectsin its member communitiesin 2023. With the construction of these seven parks, IMPA added 24.7 MW of capacity to its portfolio, enough to power nearly 4,600 homes. The seven parks all met the requirements to receive $15.7 million of Elective Pay ITC for the projects, reducing the capital cost by approximately 32% “IMPA’s solar program has steadily grown since we first began building parks in member communities in 2014,” commented Jack Alvey, IMPA President and CEO. “With the implementation of the IRA and its Elective Pay option, our not-for-profit members are now provided the same incentive possibilities enjoyed by investor-owned utilities and other energy developers who invest in renewable energy projects primarily to receive the tax credit. IMPA’s direct receipt of the ITC goes directly and in-full to IMPA’s members’ customers. We appreciate the opportunities provided by the IRA for renewable energy development and the benefits they provide to the 350,000 people in our municipal electric communities, enabling IMPA to continue serving our members with low-cost, reliable, and environmentally-responsible power. ”

 For more information about IMPA’s solar program, visit www.impa.com/solar.