The Inflation Reduction Act
Paves the Way For Clean Energy
According to President Biden, the Inflation Reduction Act is “not just about today, it’s about tomorrow. It’s about delivering progress and prosperity to American families.” This act, signed into law in August of 2022, is a roadmap for our country to focus more on clean energy by empowering Americans to innovate new jobs and products that will not only mean more money in American pockets, but also cut back the pollution and policies that have been driving climate change to a crisis point. Over the course of the next ten years, we should be able to see a dramatic shift toward clean energy in the American economy.
Tax Cuts and Relief
Not only does the Inflation Reduction Act set its sights on the future, it also aims to help Americans today. By implementing certain tax cuts and relief programs, this act will end up saving families a great deal of money with regards to their energy bills, if they drive clean vehicles, and have homes that utilize clean energy. Even big businesses that make an effort to invest in clean manufacturing will benefit greatly from these tax cuts. The idea is to make clean living attractive with monetary compensation so that these new habits will become a new way of life.
These tax cuts and provisions also benefit low-income communities by offering bonus credits to any projects within these areas. These projects will also aim to pay workers higher wages—ones they can live on—as they build our new clean energy infrastructure from the ground up. The goal is that not only will the nation benefit from clean energy, but that those who put it into practice and work to make clean energy mainstream will be compensated accordingly.
President Biden’s aim is to make higher paying jobs while also shifting our nation more toward clean energy, which will last long after his Administration.
Grants and Loans
The Inflation Reduction Act also offers grants and loans—billions of dollars worth—for any programs that invest and/or implement clean energy. These grants and loans are also designed to help relieve working families in rural areas or other parts of the country that are sometimes overlooked or underprivileged. The Justice40 Initiative, advanced by this new law, is President Biden’s plan to provide forty percent of the clean energy benefits, as well as those of climate, infrastructure, and others, to communities that have been disadvantaged in the past, including rural communities, energy communities, and Tribes.
The Big Picture
Over all, the Inflation Reduction Act is President Biden’s vision of providing well-paying jobs for union workers, lowering costs overall for every American, while addressing the pressing issue of climate change through investing in clean energy. These programs will reward those making an effort in this direction while also further offering grants and loans to programs committed to the same. If we work together and commit to making the world not only a better place, but a cleaner place, our economy, our wallets, and most importantly, our planet, will thrive.
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