The Inflation Reduction Act (IRA), a major climate bill, has been passed into law, marking the start of a significant transition from fossil fuels to clean energy. The IRA is the most expensive climate undertaking in U.S. history and is aimed at making non-fossil fuel options available to more Americans. The U.S. government hopes the bill’s passage will make the country a model for green energy, according to a report by Screenrant on August 22, 2022.
The IRA includes a $700+ million investment in the country’s electric vehicle space, new tax credits, and rebates for homeowners to encourage more Americans to switch to electric vehicles, increase access to healthcare facilities, and decrease energy consumption costs for citizens.
The IRA provides a vast amount of tax credits to encourage homeowners to switch to clean energy. The tax credits reward homeowners for undertaking energy-saving home improvements and will help them reduce energy consumption, lower utility bills, and improve health and comfort. The IRA offers a 30% tax credit for homeowners who invest in green energy systems like solar water heating, fuel cells, and solar electricity.
In addition, the IRA provides prompt reimbursements for the purchase of modern, energy-efficient electric equipment. Homeowners can receive up to $8,000 in rebates for installing a heat pump or air conditioning system. Additionally, home energy-efficient furnishing efforts will be rewarded with a $4,000 incentive. The IRA also provides tax breaks for the purchase of new energy-saving appliances.