Sustainability Spotlight - November 2022 - The Inflation Reduction Act Delivers Affordable Clean Energy Directly to Households and Small Businesses
The Inflation Reduction Act is the most significant legislation in U.S. history to tackle the climate crisis and strengthen American energy security. It will lower energy costs for households and small businesses, and deliver a clean, secure, and healthy future for our children and grandchildren.
LOWER ENERGY COSTS: The Inflation Reduction Act will make it more affordable to purchase energy efficient appliances, make energy efficient repairs around homes that will save money on utility bills each month, through:
- Rebates covering 50-100% of the cost of installing new electric appliances, including super-efficient heat pumps, water heaters, clothes dryers, stoves, and ovens. Low- and moderate-income households are eligible for rebates.
- Rebates for households to make repairs and improvements in single-family and multi-family homes to increase energy efficiency.
- Tax credits covering 30% of the costs to install solar panels and battery storage systems, make home improvements that reduce energy leakage, or upgrade heating and cooling equipment. No income limits apply.
- Tax credits covering 30% of the costs of community solar projects—owned by local businesses that sign up families to save on their electric bills—with additional bonus credits of 20% for projects at affordable housing properties and 10% for projects in low-income communities.
SMALL BUSINESS: Commercial building owners can receive a tax credit up to $5 per square foot to support energy efficiency improvements that deliver lower utility bills. Other programs that benefit small businesses include tax credits covering 30% of the costs of installing low-cost solar power and of purchasing clean trucks and vans for commercial fleets.
ELECTRIC VEHICLES: The Inflation Reduction Act will make it easier and cheaper to purchase an electric vehicle, with upfront discounts up to $7,500 for new EVs and $4,000 for used EVs, helping middle-class Americans skip the gas pump and save on fuel costs. Colorado recently submitted a state plan for using funds from the Bipartisan Infrastructure Law to build EV charging stations along highways.
CLEANER AIR: The Inflation Reduction Act will significantly reduce air pollution, resulting in fewer asthma attacks. Lowering greenhouse gas emissions will improve metro Denver air quality—preventing premature deaths. In addition to reducing pollution across the country, the Act will benefit communities most in need of cleaner air with environmental justice block grants that will prioritize emissions-reducing projects in disadvantaged communities, and investments for cleaner buses and trucks.
Many of these benefits are available in this 2022 tax year, with others becoming available in 2023.
The preceding information was taken from a White House web site.
