In a big win for the planet, the Senate passed a bill which commits more than $370 billion to aiding and enhancing the fight against climate change on Sunday, August 7th. Moved forward by a 51-50 tie-breaking vote, the Inflation Reduction Act sets in motion the current Administration’s illuminated goals of reduction of carbon emissions by 40% by the end of the decade and lends further support to consumers who wish to switch to green energy, making this bill the largest investment by the Federal government in addressing climate change.
The large investment of this bill will be funded through an increase of taxes on large corporations and stock buybacks. For environmentally conscious consumers, additional tax incentives will be available through the purchase of electric vehicles and renewable energy sources. Under the new bill, expected to pass the house this week, qualified homeowners can deduct 30% of the solar project and battery solutions cost on their annual taxes for all projects installed prior to December 31, 2023. The Inflation Reduction Act also passes the slow lane to offer qualified buyers with $7,500 in tax credits for consumers who trade their gas-guzzler for a new electric vehicle and $4,000 for a used EV.
An executive director at the nonprofit Vote Solar explains that the new legislative bill will decrease the payback time of a residential solar system, creating significantly more savings for homeowners in a shorter return on investment period. As inflation continues to rise, the cost of producing energy is further complicated. Consumers will continue to see utility rates spike, widening the gap in monthly cost for those without a solar system. According to Bloomberg, right now is the best time to go solar thanks to this bill.
At Solcium Solar, it is always a good time to choose renewable energy. Solcium’s in-house team of solar experts are well-informed on the most up to date legislation, technology, financing options and quality equipment to help their clients make illuminated decisions about their own solar journey.
Contact Solcium for a free educational consultation to learn how much green can be earned by going green under the Inflation Reduction Act.