The Inflation Reduction Act (IRA), signed into law by President Biden, along with other recent transformative economic and climate legislation, promises to lay the foundation for a clean economy of the future by lowering energy costs for families, cleaning up legacy pollution, creating millions of jobs, and bringing within reach our country’s goal of reducing planet warming emissions. The financial incentives contained in this law to supercharge the renewable energy transition could completely transform local economies, with particular impact in a place like Puerto Rico.

The people of Puerto Rico have endured years of gutting austerity measures due to a debt crisis, crippling natural disasters that have decimated livelihoods, environmental injustice that has taken a toll on public health, and a failing electrical grid that impairs all aspects of life on the island. The incentives contained in the IRA could represent a great opportunity for Puerto Rico as it takes on the challenge of building its economy of the future. Puerto Rico’s tax status as an unincorporated territory with residents that do not pay federal income taxes, however, requires the U.S. Department of the Treasury to provide clear eligibility guidance for residents of Puerto Rico to fully benefit from IRA.

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