The Inflation Reduction Act of 2022 (IRA) was recently signed into law by United States President Joe Biden in August. This act is aimed to target climate change, inflation, tax, and health care. Here are five benefits of the act, according to the United States Senate.
Lower Energy Bills
Benefits of the act include lowering energy bills and costs for individuals and businesses. Energy-efficient appliances, vehicles, and technologies have been proven to help reduce carbon emissions, an accelerator of climate change, at lower price points. The act will incentivize households to switch to energy-efficient transportation and household appliances and items, including investments in roof-top solar energy.
A record $9 billion in consumer home energy rebate programs will be funded under the act, as well as a focus on lower-income communities and consumers who are less able to afford energy-efficient items and technologies. In addition, ten years of consumer tax credits will be granted to homeowners who upgrade their homes with energy-efficient heat pumps, solar panels, and electric HVAC and water heaters.
A $4,000 consumer tax credit will be given to individuals who purchase used electric/clean vehicles, while up to $7,500 in tax credits will be given to those who purchase new electric/clean vehicles.
These efforts are to encourage homeowners and individuals to reap tax benefits and overall lower monthly bills and expenditures on electricity and fuel after making efficient swaps. If successful, this could drastically reduce greenhouse gas emissions from residential and commercial environments.
Reduction in Carbon Emissions
The overarching goal of the act is to cut greenhouse gas emissions by 40$ by the year 2030. In combination with carbon reductions from investments in residential and commercial energy efficiencies, the act aims to reduce greenhouse gasses in a few other key ways.
Every sector of the economy will be targeted to reach “decarbonization.” Doing so would significantly decrease total emissions from major generators, including manufacturers, agriculture, construction, and electricity production.
A $30 billion investment will be generated for grants and loan programs for states and electric utilities to accelerate the transition to clean electricity. This will include operations to increase the usage of clean fuels and electric vehicles across the state. Manufacturers across the country will be highly incentivized to reduce emissions, especially those manufacturing chemicals, cement, and heavy metals.
The United States Postal Service will be allotted more than $3 billion dollars to obtain zero-emission vehicles for all operations of the agency across the country.
Creates Green Jobs
With ambitious goals for carbon reduction across the company, the act aims to create green jobs and support the economy. Building jobs from the bottom up and the middle out, workers for energy-efficient commercial buildings, homes, and electric vehicles (EV) will be protected from wage garnishment. Any company promising to pay competitive wages and benefits that are unable to follow through will be penalized.
To continue to build an energy-efficient country and create jobs, the Make it in American provision will fall under this new act to ensure clean energy products are composed of materials made in the United States.
Investments in Minority Communities
Minority communities are often left behind when it comes to environmental justice and human rights, including clean air and water. The act will disperse $60 billion dollars of funding to environmental justice projects and disadvantaged communities. Community-led projects in disadvantaged communities and community capacity-building centers are to address disproportionate environmental and public health concerns.
The Neighborhood Access and Equity Grants, funded at $3 billion, will support affordable, green transportation access with four competitive grants.
Increased Energy Security in the United States
The act will help the United States gain higher rates of energy independence. Policies to support energy reliability and cleaner production are expected to reduce our reliance on foreign fuels and power, especially in China.
In addition, a growing green economy coupled with American-made green technology will feed off each other to create longevity and independence of fuels and energy supplied within the United States.
The Inflation Reduction Act of 2022 (IRA) was recently signed into law by United States President Joe Biden in August of 2022.
Tax credits and funding will be used to target climate change, emissions, health care, and more.
The act is expected to cut carbon emissions by 40% by the year 2030.