Biden signs Inflation Reduction Act into law

Content sourced from ACEEE and CBS

The Inflation Reduction Act (IRA) passed by Congress and signed by President Biden earlier this month includes the largest combined investments in energy efficiency and decarbonization in U.S. history to improve our buildings, vehicles, and industry. The new law provides $369 billion to fund energy and climate projects to reduce carbon emissions by 40% over 2005 levels, by 2030. It also gives a critical boost to the clean energy transition that is necessary to address climate change.

Energy efficiency is an essential part of the package, which will be a big step toward meeting President Biden’s climate and equity goals. Specifically, the IRA offers incentives, tax credits, and rebates for efficient, electric appliances such as space and water heating heat pumps as well as efficiency upgrades including insulation and air sealing for low- and moderate-income households. The IRA will also create 9 million good-paying clean energy jobs and support technology and clean energy development. While more investment will be needed to address the climate crisis, the IRA investments—to be made over the next 10 years—will put us on a much better path. Below are the clean energy directives delivered in the historic legislative initiative.

Lowering Energy Costs

  • Families that take advantage of clean energy and electric vehicle tax credits will save more than $1,000 per year.
  • $14,000 in direct consumer rebates for families to buy heat pumps or other energy efficient home appliances, saving families at least $350 per year.
  • 7.5 million more families will be able install solar on their roofs with a 30% tax credit, saving families $9,000 over the life of the system or at least $300 per year.
  • LUp to $7,500 in tax credits for new electric vehicles and $4,000 for used electric vehicles, helping families save $950 per year.
  • Putting America on track to meet President Biden’s climate goals, which will save every family an average of $500 per year on their energy costs.

Building a Clean Energy Economy

  • Power homes, businesses, and communities with much more clean energy by 2030, including:
    • 950 million solar panels
    • 120,000 wind turbines
    • 2,300 grid-scale battery plants
  • Advance cost-saving clean energy projects at rural electric cooperatives serving 42 million people.
  • Strengthen climate resilience and protect nearly 2 million acres of national forests.
  • Creating millions of good-paying jobs making clean energy in America.

Reducing Harmful Pollution

  • Reduce greenhouse gas emissions by about 1 gigaton in 2030, or a billion metric tons – 10 times more climate impact than any other single piece of legislation ever enacted.
  • Deploy clean energy and reduce particle pollution from fossil fuels to avoid up to 3,900 premature deaths and up to 100,000 asthma attacks annually by 2030.

See the full Inflation Reduction Act by the numbers: