approach | Energy experts say consumers will benefit from lower utility bills and cheaper home upgrades.
August 7, 2022, 4:56 PM ETA August 7, 2022, 4:56 PM ET
The Inflation Reduction Act passed by the Senate on Sunday could lower consumers’ electricity bills and the prices of things like rooftops Solar Democrats and some energy experts said panels, energy-efficient appliances and electric vehicles.
Under the legislation, the Home Improvement Energy Efficiency Credit will allow families to deduct up to 30 percent of the costs of upgrades such as heat pumps and insulation. Another provision expands a program that allows families who install solar or battery storage systems to deduct 30 percent of the cost of those projects from their taxes.
Rewiring America, a nonprofit group that promotes energy efficiency, said it estimates that these and other measures in the legislation could save families $1,800 a year.
The package also continues an incentive for families to replace their gas-powered cars with electricity. It extends a current tax credit of $7,500 for new electric cars and $4,000 for a used car. Spouses who earn less than $300,000 per year or individuals who earn less than $150,000 per year will be eligible for the credits, and consumers will receive the discount at the agency.
“This bill will help create jobs and reduce costs for many American families,” said Senator Thomas R. Carper, Democrat of Delaware, as well as slowing climate change.
Republicans said they expected the measure to increase inflation and said the loans would not help Americans.
“They don’t want to buy an electric car in the near future,” Senator Marco Rubio, R-Fla., said of his constituents. They will let gas prices go down because we produce more oil.