{"id":12705,"date":"2022-08-16T21:07:10","date_gmt":"2022-08-16T21:07:10","guid":{"rendered":"https:\/\/www.empower-solar.com\/?p=12705"},"modified":"2022-09-12T20:44:46","modified_gmt":"2022-09-12T20:44:46","slug":"americas-clean-energy-future-inflation-reduction-act","status":"publish","type":"post","link":"https:\/\/empower-solar.com\/en\/blog\/americas-clean-energy-future-inflation-reduction-act\/","title":{"rendered":"Investing in America\u2019s Clean Energy Future: the Inflation Reduction Act"},"content":{"rendered":"<h2><i><span style=\"font-weight: 400;\">Solar Tax Credit Increased to 30% and Extended for 10 Years<\/span><\/i><\/h2>\n<p><span style=\"font-weight: 400;\">On August 12th, the House of Representatives passed the nation\u2019s largest investment in climate action: the Inflation Reduction Act (IRA). This vote came five days after the Senate passed the IRA, and\u00a0President Biden signed the bill into law on August 16th.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This historic piece of climate legislation has three main goals: (1) to decrease the amount of greenhouse gas emissions; (2) to decrease the impacts of climate change on the most affected and vulnerable populations; and (3) to establish the United States as a center of clean energy manufacturing and usage.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Investment Breakdown<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Among other policy measures, the bill calls for $369 billion to be invested in domestic energy security and climate change. Here is a closer look at the breakdown of funding:<\/span><\/p>\n<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\" wp-image-12706 aligncenter\" src=\"https:\/\/i0.wp.com\/www.empower-solar.com\/wp-content\/uploads\/2022\/08\/IRA-Charts-300x225.png?resize=758%2C569\" alt=\"Electrifying the Economy with the IRA\" width=\"758\" height=\"569\" srcset=\"https:\/\/i0.wp.com\/empower-solar.com\/wp-content\/uploads\/2022\/08\/IRA-Charts.png?resize=300%2C225&amp;ssl=1 300w, https:\/\/i0.wp.com\/empower-solar.com\/wp-content\/uploads\/2022\/08\/IRA-Charts.png?resize=768%2C576&amp;ssl=1 768w, https:\/\/i0.wp.com\/empower-solar.com\/wp-content\/uploads\/2022\/08\/IRA-Charts.png?w=1024&amp;ssl=1 1024w\" sizes=\"auto, (max-width: 758px) 100vw, 758px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">The Inflation Reduction Act offers incentives that encourage consumers, businesses, and manufacturers to choose clean energy. What does this entail? Federal rebates, tax incentives, grants, and lending capacity to encourage the production and purchase of electric appliances, heat pumps, <\/span><a href=\"http:\/\/www.empower-solar.com\/home-solar\/\"><span style=\"font-weight: 400;\">rooftop solar<\/span><\/a><span style=\"font-weight: 400;\">, home battery backup systems, efficiency retrofits, <\/span><a href=\"http:\/\/www.empower-solar.com\/electric-vehicles\/\"><span style=\"font-weight: 400;\">electric vehicles and EV charging<\/span><\/a><span style=\"font-weight: 400;\">, and a number of other home energy improvements that cut costs while boosting efficiency.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">How To Benefit From the IRA<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">One of the most exciting provisions of the act is the extension of the federal tax credit. Since 2006, the solar investment tax credit (ITC) has allowed the U.S. solar industry to <\/span><a href=\"https:\/\/www.seia.org\/initiatives\/solar-investment-tax-credit-itc\"><span style=\"font-weight: 400;\">grow over 10,000%<\/span><\/a><span style=\"font-weight: 400;\">, creating more than 230,000 jobs while significantly lowering electricity costs for American families. Not only can the ITC be applied toward solar energy systems, but it also extends to solar plus <\/span><a href=\"http:\/\/www.empower-solar.com\/backup-power-solutions\/\"><span style=\"font-weight: 400;\">battery storage systems<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Prior to the passage of the IRA, the ITC was expected to drop from 26% to 22% at the start of 2023 before disappearing completely in 2024. The IRA has increased the ITC to 30% for the next 10 years, allowing residents who install solar on their property to get 30% back on their federal taxes. This also applies to installations completed in 2022.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Additionally, the bill provides money saving incentives for drivers who switch to an electric vehicle. EVs that meet certain <\/span><a href=\"https:\/\/thehill.com\/policy\/energy-environment\/3587157-manchin-deal-could-expand-ev-tax-credits-but-many-cars-may-not-qualify\/\"><span style=\"font-weight: 400;\">manufacturing requirements<\/span><\/a><span style=\"font-weight: 400;\"> will be eligible for the full $7,500 rebate, while others will be eligible for half the rebate.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cThis is a big moment for our entire country,\u201d says EmPower\u2019s CEO David G. Schieren. \u201cWe are increasing our energy resiliency, improving our economy, and enabling homeowners across the country to decrease their reliance on traditional energy sources.\u201d<\/span><\/p>\n<p><em><span style=\"font-weight: 400;\">If you&#8217;re interested in lowering your electricity bills, now is the perfect time to go solar. <\/span><a href=\"https:\/\/bit.ly\/HomeSolarConsultation\"><span style=\"font-weight: 400;\">Schedule a free consultation<\/span><\/a><span style=\"font-weight: 400;\"> with our team of experts and see how much you can save with solar. <\/span><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Solar Tax Credit Increased to 30% and Extended for 10 Years On August 12th, the House of Representatives passed the nation\u2019s largest investment in climate action: the Inflation Reduction Act (IRA). This vote came five days after the Senate passed the IRA, and\u00a0President Biden signed the bill into law on August 16th. This historic piece [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":9342,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"nf_dc_page":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[12],"tags":[],"class_list":["post-12705","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Investing in America\u2019s Clean Energy Future: the Inflation Reduction Act - EmPower Solar<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/empower-solar.com\/en\/blog\/americas-clean-energy-future-inflation-reduction-act\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Investing in America\u2019s Clean Energy Future: the Inflation Reduction Act - EmPower Solar\" \/>\n<meta property=\"og:description\" content=\"Solar Tax Credit Increased to 30% and Extended for 10 Years On August 12th, the House of Representatives passed the nation\u2019s largest investment in climate action: the Inflation Reduction Act (IRA). This vote came five days after the Senate passed the IRA, and\u00a0President Biden signed the bill into law on August 16th. 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