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Inflation Reduction Act / Federal Clean Energy Tax Credits / Reimbursement

Council File 22-0947-S1

Introduced
2024-08-27
Last changed
2026-05-12
Status
open
Expires
2028-05-08
Initiated by
City Administrative Officer
References
City Administrative Officer Report: 0220-06228-0000; 0220-06228-0001; 0220-06228-0002

Brief

The City Administrative Officer submitted a report on federal Clean Energy Tax Credits available through the Inflation Reduction Act and the city's strategy to capture and deploy them for municipal projects. The Council adopted the item in May 2026 (11-0-4) and sent it to the Mayor on May 12, 2026. The file has been through multiple CAO updates since August 2024, passed the Energy and Environment Committee, and is now pending mayoral signature. The deadline for the Mayor to act is May 22, 2026.

Full summary

The Inflation Reduction Act created substantial tax credits for clean energy investments, and the City Administrative Officer has been tracking Los Angeles' eligibility for these credits and developing a strategy to capture federal reimbursements for municipal projects. The CAO has submitted three status reports since August 2024, with the most recent, the Third Status Report, presented to the Energy and Environment Committee in April 2026. The third round of Council action, adopted 11-0-4 on May 8, 2026, directs several specific uses of clean energy tax credit funds already recovered. The Council approved transferring $200,571.25 from a Grants and Awards Fund account holding recovered tax credit proceeds into the CAO's contractual services budget to support development of the city's Climate Action and Adaptation Plan. A separate $60,000 transfer moves funds into a new Capital and Technology Improvement account to launch a low carbon concrete pilot program. Together, these transfers total $260,571.25 and are drawn entirely from existing special funds with no impact on the General Fund. The CAO is also instructed to return with recommendations for deploying remaining tax credit funds and any future reimbursements — specifically targeting projects and activities that reduce greenhouse gas emissions — after the 2024 claim payment is received. The file has followed a recurring cycle: CAO reports status and recommends fund allocations, the Energy and Environment Committee approves, and the full Council adopts the item before transmitting it to the Mayor. This pattern repeated in October 2024, May 2025, and again in May 2026, reflecting an ongoing effort to claim and deploy federal dollars as project timelines and credit availability evolve. The May 2026 vote of 11-0-4 passed with four members absent or not voting. As of May 12, 2026, the file is with the Mayor, who has until May 22, 2026 to act. The file remains open and expires May 8, 2028, leaving room for additional CAO reporting cycles as the city continues to pursue future clean energy tax credit reimbursements.

Activity (23)

  • 2026-05-12 City Clerk transmitted file to Mayor. Last day for Mayor to act is May 22, 2026.
  • 2026-05-08 Council adopted item, subject to reconsideration, pursuant to Council Rule 51.
  • 2026-05-05 City Clerk scheduled item for Council on May 8, 2026.
  • 2026-04-21 Energy and Environment Committee approved item(s) .
  • 2026-04-17 Energy and Environment Committee scheduled item for committee meeting on April 21, 2026.
  • 2026-04-16 City Administrative Officer document(s) referred to Energy and Environment Committee.
  • 2026-04-16 Document submitted by City Administrative Officer, dated April 16, 2026.
  • 2025-05-19 Council action final.
  • 2025-05-09 Council transmitted file to Mayor. Last day for Mayor to act is May 19, 2025.
  • 2025-05-09 Council adopted item forthwith.
  • 2025-05-06 Energy and Environment Committee approved item(s) .
  • 2025-05-06 City Clerk scheduled item for Council on May 9, 2025.
  • 2025-05-02 Energy and Environment Committee scheduled item for committee meeting on May 6, 2025.
  • 2025-03-20 City Administrative Officer document(s) referred to Energy and Environment Committee.
  • 2025-03-19 Document(s) submitted by City Administrative Officer, as follows:City Administrative Officer report, dated March 19, 2025, relative to the status of the Federal Clean Energy Tax credits from the Inflation Reduction Act.
  • 2024-10-24 Council action final.
  • 2024-10-16 City Clerk transmitted file to Mayor. Last day for Mayor to act is October 28, 2024.
  • 2024-10-15 Council adopted item forthwith.
  • 2024-10-11 City Clerk scheduled item for Council on October 15, 2024.
  • 2024-09-27 Energy and Environment Committee approved item(s) .
  • 2024-09-20 Energy and Environment Committee scheduled item for committee meeting on September 27, 2024.
  • 2024-08-28 City Administrative Officer document(s) referred to Energy and Environment Committee.
  • 2024-08-27 Document(s) submitted by City Administrative Officer, as follows:City Administrative Officer report 0220-06228-000, dated August 27, 2024, relative to the status of the Federal Clean Energy Tax credits from the Inflation Reduction Act.

Documents (11)

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