Small- and medium-sized manufacturers (SMMs) have the opportunity to increase productivity and efficiency while saving money with the Industrial Assessment Centers (IAC) Implementation Grants Program. With the passage of the Bipartisan Infrastructure Law (BIL) on November 21, 2021, $550 million has been invested to expand the IAC Program to reduce industrial emissions and encourage a net-zero environment.

With the passage of the BIL, the IAC Grant Implementation Program will be able to provide up to $400 million in grants to SMMs. An energy assessment is required to determine eligibility of SMMs. These assessments must be conducted by an Industrial Assessment Center, Combined Heat and Power Technical Assistance Partnership (CHP TAP), or a third-party assessor that provides an equal assessment as an IAC or CHP TAP.

Grant awards per eligible manufacturer can be for up to $300,000 per quarterly funding round at 50% cost share. Cost share options include, but are not limited to, internal capital, in-kind contributions, and state and local public programs. An SMM refers to a manufacturer encompassing water and wastewater treatment, as well as Controlled Environment Agriculture (CEA) facilities, possessing the subsequent traits within:

• Gross annual sales less than $100,000,000 (based on the manufacturing firm/entity);
• Under 500 employees at the facility site; and
• Annual energy bills of more than $100,000 but less than $3,500,000 (based on the manufacturing firm/entity).

An applicant is considered a separate entity under this program if it independently pays taxes in the U.S., regardless of being a wholly owned subsidiary of a larger corporation. Eligible projects encompass enhancements to site energy and/or material efficiency, cybersecurity infrastructure, productivity, and/or reductions in site waste generation, greenhouse gas emissions, and/or non-greenhouse gas pollution.

For manufacturers looking to apply, the IAC Grant Program operates on a rolling basis. Applications can be submitted throughout the year at any time and undergo quarterly reviews. Posted dates of review deadlines are:

• July 1, 2024
• October 1, 2024
• January 10, 2025

Citrin Cooperman’s Manufacturing and Distribution Industry Practice has a team dedicated to helping management make informed decisions that improve efficiencies, reduce costs, and ultimately improve the bottom line. If you are interested in exploring the IAC grant and your business’ eligibility, please contact your Citrin Cooperman advisor or Matthew Bruno at mabruno@citrincooperman.com.