U.S. President Joe Biden signed a $700 billion Inflation Reduction Act, the biggest climate investment in U.S. history that would slash greenhouse gas emissions and accelerate the transition to clean energy. The act is projected to reduce about a billion metric tons of greenhouse gas emissions by 2030 and reach net-zero emissions by 2050. This signals a green light to green technology leading the nation towards a green environment and green economy. It creates a win-win situation for everyone – homeowners, small businesses, consumers, utility companies, manufacturers, governments, and other industries.
What does it mean for an individual household?
This act dedicates almost $400 billion towards promoting domestic production of clean energy and manufacturing. It lowers the energy costs; provides tax credits and rebates to buy Electric Vehicles and energy saving appliances; and encourages investment in clean energy systems. Individual homeowners can utilize these incentives and make their home energy efficient which will save thousands of dollars for each household.
Lower Energy Costs:
- Rebates covering almost 50%-100% of installation cost for new appliances including super-efficient heat pumps, water heaters, dryers, stoves, and ovens.
- Rebates to make repairs and improvements in single-family or multi-family households to increase energy efficiency.
- Tax credits covering 30% of the costs to install solar panels.
- Cuts energy bills by $500 to $1,000 per year.
Electric Vehicles:
- Discounts up to $7,500 to purchase new EVs and $4,000 for used EVs.
What does it mean for the Country?
The bill reduces pollution, lowers net greenhouse emissions, focuses on the disadvantaged communities, strengthens U.S. energy security, and builds a clean energy economy that will create jobs leading the nation to a clean and healthy future.
Creates jobs:
- Provides millions of new domestic clean manufacturing jobs across solar, wind, storage, and other clean energy industries.
Cleaner air:
- Reduces particle pollution from fossil fuels to avoid 3,900 premature deaths and up to 100,000 asthma attacks by 2030.
Small businesses:
- Commercial building owners can receive a tax credit up to $5 per square foot to support energy efficient improvements. Tax credits covering 30% solar installation costs, purchasing clean trucks and vans for commercial fleets.
Community Projects:
- Tax credits covering 30% for community solar projects with addition of 20% for projects at affordable housing properties and 10% for projects in low-income communities.
- Grants to help state and local governments to adopt the latest building energy codes which will save an average homeowner almost 8% on their utility bills.
All the 50 States, DC, and Puerto Rico have plans to build EV charging stations along highways that will create a national charging network where charging stations will be as easy as locating a gas station. Scientists around the globe welcome the new legislation with the hope that this will acknowledge and promote more needed work to tackle climate change.
SOURCES:
https://www.democrats.senate.gov/imo/media/doc/inflation_reduction_act_one_page_summary.pdf
