Section 50142 of the IRA appropriates $3 billion to DOE to provide direct loans to establish or expand facilities to manufacture low- and zero-greenhouse gas emission vehicles in the U.S. Specifically, loans may be provided for “reequipping, expanding, or establishing a manufacturing in the United States to produce, or for engineering integration performed in the United States, of advanced technology vehicles […] [that] emit, under any possible operational mode or condition, low or zero exhaust emissions of greenhouse gases.”
DOE may not use more than $25 million of the appropriated funds for administrative costs of providing loans. The appropriated funds will remain available through September 30, 2028.
Eligible Entities:
Current Status:
Section 50402 of the One Big Beautiful Bill Act of 2025 (Public Law 119-21) repealed and rescinded unobligated funds under this IRA provision.
Trump Administration Actions:
- Congress Passes Budget Bill, Rescinding Funds and Repealing IRA Programs and Tax Credits [07/03/2025]
- DOE Secretary Orders Review of 179 Financial Assistance Awards [05/15/2025]
- House Committee on Energy and Commerce Proposes IRA Rollbacks to DOE Programs [05/13/2025]
- Litigation Compliance Report Indicates DOE Released Previously Frozen Awards [04/23/2025]
- DOE Creating List of Clean Energy Grants to Cancel [03/21/2025]
- DOE Contract Workers Put on Unpaid Leave [02/21/2025]
- OMB Orders Temporary Pause on Financial Assistance Programs, Later Rescinded [01/27/2025]
- DOE Memo Suspends Funding for Projects Involving Community Benefit Plans [01/27/2025]
- OMB Clarifies Scope of the Order to Halt IRA Spending [01/21/2025]
- Trump Issues Executive Order to Halt All IRA Funding Disbursements [01/20/2025]
Implementation Status at End of Biden Administration:
IRA appropriates $3 billion to DOE to award as loans by September 30, 2028. In August 2023, DOE announced $10 billion in loan authority to retool existing automotive manufacturing factories, $3 billion of which was appropriated by IRA section 50142. In November of 2024, DOE awarded $50 million to 5 states to retool facilities to build EVs. The program funding under this provision has been spent.
Biden Administration Actions:
- DOE Announces Commitment of 94% of IRA Grant Funds to States and Projects [01/17/2025]
- DOE Makes Conditional Commitment to Rivian for Loan Guarantee for EV Manufacturing Facility Construction [11/25/2024]
- DOE Announces $50 Million in Funding to Upgrade Vehicle Manufacturing Facilities [11/22/2024]
- DOE Announces $50 Million to Help Build the EV Supply Chain [08/15/2024]
- DOE Announces $15.5 Billion in Funding and Loans to Retrofit Automotive Manufacturing Facilities to Support the Transition to Electric Vehicles [08/31/2023]
- White House Releases IRA Guidebook for Tribes [04/04/2023]