Two years ago, President Biden signed landmark climate legislation — the Inflation Reduction Act (IRA) — into law, spurring the largest investment in clean energy and climate in U.S. history. To celebrate, we’re highlighting how this legislation has put us on track to reach carbon reduction goals while supporting communities with new jobs, pollution reduction programs, and environmental justice priorities.
August is a month filled with heat, back-to-school commercials, and a major clean energy milestone, passage of the most historic piece of climate legislation in United States history: The Inflation Reduction Act (IRA).
On August 16th, 2022, the IRA made history. To date, the IRA is the most significant clean energy investment and climate action ever taken in the US, with $370 billion in investments to support clean energy solutions for all 50 states. The law has already accomplished many incredible things it was intended to do: improve US industrial competitiveness by bringing back domestic manufacturing, drive innovation in clean energy technology to drive down carbon emissions, and create jobs. So many jobs. As of February 2024, the investments funded by the IRA have created 271,000 jobs, and counting!
You might be wondering: I don’t work on one of these clean energy projects, how does this affect me on a daily basis? For those of us who aren’t currently building the clean energy future with our hands, there are still a ton of financial benefits — for both individuals and communities. Some of those benefits include money to Americans in the form of tax credits and consumer discounts for home upgrades, electric vehicle purchases, and other clean energy technologies. There’s also the overall quality of life benefit all of us reap from reducing air pollution that creates healthier, more resilient communities.
Jobs, jobs, jobs
Since it is the IRA’s birthday, it is a perfect time to give the law compliments and look back at its successes in the past two years. In two years, the IRA has helped add 33,000 more charging stations for EVs and saved consumers an almost inconceivable $1 billion dollars on EV purchases.
These benefits are not limited to blue states or cities; the IRA benefits and jobs have been nationwide. In Georgia, the IRA has created 30,000 new jobs, 23,000 in Texas, 21,000 in Kansas, and 18,000 in South Carolina. All cities and all states, regardless of political affiliation, are benefiting from the IRA. Clean energy jobs are good for the whole country.
Some studies project that the IRA will create 1.5 million additional jobs over the next decade, while consumers who electrify their lives are projected to continue to save billions of dollars. Since 2022, over 1,000 clean energy projects have been announced that keep building the jobs momentum nationwide.
Cashing in on clean energy
Let’s take a look at some of those benefits! The IRA provides up to $2,000 to upgrade your old gas furnace to an electric heat pump, which is 3-5 times more energy-efficient. Or what about induction stoves, which cook faster and are easier to clean than gas or coil models. The IRA also provides incentives to help you make the switch — up to $14,000, depending on your income, to high-efficiency home upgrades that inadvertently add value to your home and help save on annual energy costs.
Are you interested in upgrading your old gas car to a fun electric vehicle (EV) that requires nearly zero maintenance? The IRA provides tax rebates of up to $7,500 for new EVs. Not interested in buying a new vehicle but still want to save? The IRA offers up to $4,000 for used EVs, too!
The Department of Energy offers this easy tool to calculate all the areas where the IRA offers tax breaks or point of sale rebates for your home, car, or appliances.
According to a recent study analyzing Treasury Department data, more than 3 million American households tapped IRS subsidies in 2023, saving more than $8 billion on clean energy technologies. More than 1.2 million Americans used the residential clean energy tax credit, which covers some of the costs of installing clean electricity-generating technology. And 750,000 of those people purchased rooftop solar panels. That is some good climate news!
As more policies pass at the state level to make clean technology more equitable and achievable for all, the number of people taking advantage of these tax credits will likely continue to rise.
Tap into the momentum
Less than one third of Americans know anything about the IRA, and we need to change that — there is a heck of a lot of money yet to be allocated — but states, cities, and taxpayers need to apply for it. Here at Generation180, we want to help you and your family take advantage of these benefits to save money when electrifying your lives. Our Electrify Your Life campaign offers simple steps to take clean energy action in your home, workplace, and community that make a big difference for all of us. Happy 2nd birthday to the IRA – we can’t wait to see what year three brings!
