The Inflation Reduction Act (IRA) of 2022 is described as the most significant climate bill in history. It aims to cut pollution in half by 2030, create clean energy jobs, invest in environmental justice, and reduce energy costs for working families. Key provisions of the bill include:
Clean Energy Tax Credits: Tax incentives for clean electricity, vehicles, technology, and manufacturing to create jobs, lower energy costs, and promote electric vehicles, potentially saving the average household $1,800 per year on energy bills.
Clean Energy Sustainability Accelerator: A $27 billion green investment fund with a focus on clean energy deployment, with 40 percent of investments targeted at disadvantaged communities.
Clean Transportation: Tax credits for electric and fuel cell vehicles, investments in cleaner transit, buses, and trucks, potentially saving car buyers up to $7,500 on new electric vehicles and $4,000 on used electric vehicles.
Environmental Justice Investments & Block Grants: $3 billion in grants to reduce pollution and improve public health in communities affected by environmental hazards. A total of $60 billion is allocated to environmental justice, making this a historic investment in this area.
Clean Manufacturing: $60 billion for the decarbonization and revitalization of American manufacturing, including support for clean energy technology production.
Healthy Ports: $3 billion to reduce diesel emissions and improve public health by supporting zero emissions port equipment.
Energy Efficiency and Electrification: Rebates for energy-efficient appliances and worker training programs to save money for middle-class families.
Agriculture, Land, and Coastal Conservation: Over $25 billion in investments for conservation, climate-smart agriculture, and coastal restoration projects.
Methane Fee: A fee on the oil and gas industry for methane pollution during extraction.
Smart-from-the-Start Clean Energy Projects: Over $750 million for better planning and transparency in clean energy and other projects.