{"id":5278,"date":"2024-06-13T15:26:56","date_gmt":"2024-06-13T19:26:56","guid":{"rendered":"https:\/\/communicator.pef.org\/?p=5278"},"modified":"2024-06-18T10:27:04","modified_gmt":"2024-06-18T14:27:04","slug":"what-you-should-know-about-the-inflation-reduction-act","status":"publish","type":"post","link":"https:\/\/communicator.pef.org\/issue\/volume-42-no-6\/what-you-should-know-about-the-inflation-reduction-act\/","title":{"rendered":"What you should know about the inflation reduction act"},"content":{"rendered":"

\"PEFJune 26, 2024 —<\/em> Editor\u2019s note: Due to unforeseen circumstances, th<\/span><\/i>e June and July\/August<\/span><\/i> Retiree columns are here combined.\u00a0<\/span><\/i>\u00a0<\/span><\/p>\n

In my May column, I wrote about issues-based support and doing our research on candidates before we blindly cast our vote.\u00a0 In this month\u2019s article, I\u2019ve focused on a piece of legislation that many of you may not be familiar with, the Inflation Reduction Act (IRA), which will have a tremendous influence on our economy and quality of life. As you already know, what happens in Washington and Albany has a major impact on our lives!<\/span>\u00a0<\/span><\/p>\n

The IRA creates millions of new clean energy jobs, makes prescription drugs more affordable, and asks the ultra-wealthy and large corporations to pay their fair share in taxes. Signed into law by President Joe Biden on Aug. 16, 2022, the bill is a $500 billion investment that includes benefits for everyday Americans.<\/span>\u00a0<\/span><\/p>\n

Below is information I\u2019ve found helpful in understanding the IRA and its impact:<\/span>\u00a0<\/span><\/p>\n

Clean energy and climate<\/span><\/b>\u00a0<\/span><\/p>\n

The IRA fights the climate crisis through historic investments in clean energy, energy efficient buildings, and resilient communities. The almost <\/span>$400 billion in funding<\/span><\/a> is administered through a mix of tax incentives, grants, and loan guarantees meant to lower carbon emissions 40% by 2030.\u00a0<\/span>\u00a0<\/span><\/p>\n

The majority of the IRA\u2019s funding is intended to transform the economy and communities by <\/span>bolstering the clean energy sector<\/span><\/a> and creating more than six million new jobs. This funding includes $216 billion in tax credits to incentivize investment in clean energy, including in wind and solar power, electric vehicles, clean energy supply chains, and transmission infrastructure.\u00a0<\/span>\u00a0<\/span><\/p>\n

To take full advantage of the tax credit, businesses and other eligible entities must meet <\/span>labor and equity standards<\/span><\/a>, as well as requirements that most of the labor and materials used are from the United States. There are additional benefits for investing in communities that have been disproportionately impacted by pollution and unlike other existing tax credits, states, local governments, and nonprofits can take advantage of these clean energy programs.<\/span>\u00a0<\/span><\/p>\n

There are also tax credits for individuals for the purchase of electric vehicles, providing up to $7,500 for new vehicles and up to $4,000 for used vehicles. These credits are payable at the time of purchase and aimed at making electric vehicles more affordable.\u00a0<\/span>\u00a0<\/span><\/p>\n

Energy Efficient Buildings<\/span><\/b>\u00a0<\/span><\/p>\n

The IRA offers a combination of grants and tax credits aimed at constructing new buildings and retrofitting existing ones to be energy efficient and climate resilient.\u00a0 <\/span>Various initiatives<\/span><\/a> to address the energy efficiency of residential, commercial, and public buildings, would create 900,000 new jobs.\u00a0<\/span>\u00a0<\/span><\/p>\n

These initiatives include:<\/span>\u00a0<\/span><\/p>\n