Senate Democrats have passed the Inflation Reduction Act to foster manufacturing growth for the clean energy industry as well as lower health care and prescription drug costs, tackling the climate crisis and slashing 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. In doing so, this bill will create thousands of good-paying union jobs and revitalize the U.S. manufacturing base. 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. The tax credit will provide a bridge for energy workers and communities as the U.S. transitions to a clean energy economy as well as prioritize workforce development.
This bill invests in American-made energy and manufacturing. The IRA includes amendments that will require some clean energy projects to meet strict domestic content standards to receive tax credits. Further, all clean energy projects will receive a 10% bonus tax credit for meeting domestic content standards.
The IRA includes tax credits to accelerate U.S. manufacturing of solar panels, wind turbines, batteries and critical minerals processing as well as a $7,500 credit for purchasing a new electric or hydrogen vehicle that was made in North America. The bill will grow a skilled workforce that provides good-paying union jobs as the clean energy industry grows. The IRA provides $9 billion in consumer home energy rebate programs to electrify home appliances and for energy efficient retrofits, as well as 10 or more years of consumer tax credits to make homes energy efficient and make heat pumps, rooftop solar and electric HVAC more affordable.
Image: Jeremy Bezanger on Unsplash
