Senate Democrats passed the Inflation Reduction Act, which encourages manufacturing growth in the clean energy sector and lowers prescription drug prices. This will help address the climate crisis and reduce the deficit.
“It will shore up the U.S.’ place as a clean energy producer and reduce our greenhouse emissions by 40 percent by 2030, while investing in the coal communities that powered our nation for generations,” states U.S. Senator Bob Casey (D.PA). “Better yet, we’re going to create 9 million well-paying jobs in the next decade to get this done. I successfully fought to include a provision that will promote the creation of family-supporting clean manufacturing jobs here in the U.S. rather than in competitors like China, because we don’t have to choose between green energy and our workers.
This piece of legislation will put the U.S. on a path to reduce emissions by 40% by 2030 while lowering American families’ energy costs at the gas pump and on their electricity bills. This bill will create thousands good-paying union jobs, and help to revitalize the U.S. manufacturing sector. Senator Casey passed a provision to incentivize clean energy deployment and manufacturing in “energy communities,” areas whose economies and jobs are or were dependent on the coal, oil or natural gas energy sectors. As the U.S. transitions into a clean energy economy, the tax credit will be a bridge for communities and workers in this sector. It will also prioritize workforce development.
This bill invests American-made energy and manufacturing. The IRA amendments will require that some clean energy projects meet strict domestic content standards in order to receive tax credits. All clean energy projects will be eligible for a 10% tax credit for meeting domestic content requirements.
The IRA offers tax credits to help accelerate U.S. production of solar panels and wind turbines as well as a $7500 credit for the purchase of an electric or hybrid vehicle that was manufactured in North America. As the clean energy industry grows, the bill will help to create a skilled workforce that can provide good-paying union jobs. The IRA provides $9 Billion in consumer energy rebate programs for home appliances, and for energy efficient retrofits. There are also 10 years of consumer credit credits to make homes more efficient, more affordable, and make heat pumps and rooftop solar more affordable.
Image: Jeremy Bezanger on Unsplash