The Inflation Reduction Act has put US climate goals on track. An emission-free economy is within reach, and we now have the tools needed to rebuild our energy infrastructure. Let’s see how the 350 billion dollars of climate investments are being leveraged.
- $30 billion for solar panels, wind turbines, & battery manufacturing
- $2 billion to retool existing auto manufacturing
- $500 million for electric heat pumps & critical minerals processing
Clean Energy Adoption
- $27 billion to support the deployment of low-and zero-emission technologies
- $7,500 tax credit for the purchase of new EVs or a $4,000 tax credit on used EVs
- $1 billion for clean heavy-duty vehicles (school & transit buses + garbage trucks)
Tax Credits & Programs
- 30% tax credit on energy-efficient & clean energy home improvements
- 2.5-year extension of existing solar investment tax credit (ITC) at 30%
- New tech-neutral ITC at 30% until 2032
- New tech-neutral production tax credit (PTC)
Social & Climate Justice
- $9 billion to electrify appliances in LMI households
- $1 billion for energy efficiency upgrades in affordable housing units
- $3 billion in environmental and climate justice block grants
- $3 billion in grants to support neighborhood equity, safety, and affordable transportation access
Underfunded communities have been facing the brunt of climate change and a higher energy burden. To combat this, this legislation provides additional tax credits to clean energy developers spreading innovation in these areas. A 10% bonus in tax credits is extended to projects built in low-income areas and a 20 percent bonus in tax credits is offered to projects serving more than 50 percent of low-income subscribers. To support our move towards US energy independence, projects using domestic content will also receive an additional 10% bonus in tax credits.
This bill represents the largest pro-climate US legislation ever passed, and it puts us on a path to 40% emission reductions by 2030.