Inflation Reduction Act’s Climate Change Initiatives Subsidize Solar Panels, Electric Vehicles

Two African men install solar panels neatly on a residential roof of a house near the ocean.
nattrass / Getty Images

With the Senate passing the Inflation Reduction Act — legislation focused around climate, taxes, and health care — on Aug. 7, the federal government appears poised to make inroads on environmental policy on several different levels.

See: 7 Walmart Brand Items That Are Just as Good as Name Brands
Find: 7 Surprisingly Easy Ways To Reach Your Retirement Goals

Beyond the spending that will go towards families’ bottom lines, the Inflation Reduction Act also focuses on clean and sustainable energy and is the largest bill to take on these reforms in U.S. history. It will allocate more than $360 billion towards modernization efforts, including $60 billion invested in the manufacturing and implementation of wind turbines and solar panels across the 50 states. There will also be tax credits for families who install solar panels or buy electric cars.

Per NPR, Democrats claim that these measures will end up reducing greenhouse gas emissions by 40% as of 2030. As well, there are estimates that the legislation would end up creating 550,000 new jobs in the green energy sector.

Discover: What Is the Average Social Security Benefit at Age 62?
More: What Is the Highest Income for Food Stamps in 2022?

The American Council on Renewable Energy issued a statement about the effects, writing that, “The legislation’s landmark investment of $369 billion in climate and clean energy programs will help deploy thousands of megawatts of renewable power, create hundreds of thousands of good-paying American jobs, reduce the cost of electric power and finally put the country on track toward achievement of our climate goals.”

Make Your Money Work for You

More From GOBankingRates

Share This Article:

Make Your Money Work for You

About the Author

Selena Fragassi joined GOBankingRates.com in 2022, adding to her 15 years in journalism with bylines in Spin, Paste, Nylon, Popmatters, The A.V. Club, Loudwire, Chicago Sun-Times, Chicago Tribune, Chicago Magazine and others. She currently resides in Chicago with her rescue pets and is working on a debut historical fiction novel about WWII. She holds a degree in fiction writing from Columbia College Chicago.
Learn More

Best Bank Accounts for September 2022

Untitled design (1)
Close popup The GBR Closer icon

Sending you timely financial stories that you can bank on.

Sign up for our daily newsletter for the latest financial news and trending topics.

Loading...
Please enter an email.
Please enter a valid email address.
There was an unknown error. Please try again later.

For our full Privacy Policy, click here.