On August 16, President Biden signed the Inflation Reduction Act into law, a bill including about $370 billion in spending and tax credits for climate change mitigation and adaptation, primarily through investment in low-emission forms of energy. Estimates indicate that Biden’s climate bill will bring energy bill relief to millions of American households and will reduce carbon emissions in the US to 40 percent below 2005 levels by 2030. That is huge! This bill offers big opportunities for Americans to save money and energy through rebates and tax breaks, from installing solar panels to upfitting home appliances to purchasing an electric vehicle.
Here is a breakdown of how you can do to take advantage of the 2022 Climate Bill:
If you are a homeowner, incentives for action and upgrades that can help you save money and energy, and reduce carbon emissions are included in the Climate Bill. Check out the article “9 Home Upgrades the Climate Bill Can Help You Pay For.” It includes information about installing rooftop solar, a heat pump, insulation, new windows and doors, an energy efficient water-heater, a high efficiency all-electric heat pump dryer, and purchasing an energy-efficient electric stove, replacing your electric panel, and rewiring your house. It also includes information about how much energy and money you can save; for example, you can receive up to $1,750 for a high-efficiency all-electric heat pump water heater.
If you are in the market for a vehicle, the Climate Bill provides a $7,500 tax credit for new electric vehicle purchases and a $4,000 or 30% of the price of the car tax credit for used electric vehicle purchases if your income level qualifies. The article “So you’re in the market for an electric vehicle? Here’s how the new federal and Mass. laws will help.” The article outlines the ins and outs of the opportunities available through the Inflation Reduction Act and also shows how states such as Massachusetts are taking further action to fight climate change and its widespread effects.
Bonus: Check out “How the Huge New US Climate Bill Will Save You Money” to learn more about the big picture of the bill and happy savings!