According to a recent report released by the Biden Administration, the Inflation Reduction Act will tackle important issues such as the climate crisis and strengthen American energy security. It will also lower energy costs for households and businesses, create manufacturing jobs for American workers, and deliver a clean, secure and healthy future for the next generation.
The Inflation Reduction Act will make it more affordable for families in Kansas to buy energy-efficient appliances, repair their homes and save money on utility bills every month, according to the Biden Administration. This will be accomplished through rebates covering 50-100% of installation costs for new appliances; rebates for household repairs; tax credits covering 30% of costs for solar panel installations and battery storage systems; tax credits covering 30% of community solar project costs; and grants aimed at helping state and local governments adopt new building energy codes.
Job opportunities in clean energy fields will also be expanded with the Inflation Reduction Act. This will bring an estimated $10.6 billion of investment in large-scale clean power generation and storage to Kansas between 2022 and 2023. Tax credits will be provided to help create jobs in solar, wind, storage and other clean energy industries.
Kansas will also receive a boost in domestic manufacturing of clean energy and transportation technologies along with investments for a new Advanced Industrial Facilities Deployment Program.
Small businesses will get help from the Act through tax credits for commercial building owners who can receive up to $5 per square foot to support energy efficiency improvements that deliver lower utility bills. Other programs benefitting small businesses include tax credits covering 30% of the costs of installing low-cost solar power and purchasing clean trucks and vans for commercial fleets.
The act will make it easier and cheaper to buy electric vehicles. Upfront discounts up to $7,500 for new EVs and $4,000 for used EVs to help middle-class Americans skip the gas pump and save on fuel costs. Hundreds of thousands of Kansans are expected to be eligible for these discounts.
Pollution reduction is another facet of the act. It is expected to help lower greenhouse gases across the U.S. and improve local air quality.
The act will also support climate-smart agriculture practices on Kansas’s 58,600 farms. Electric cooperatives will be eligible for direct-pay clean energy tax credits.
Finally, the act will upgrade affordable housing, including projects that boost resilience in the face of intensifying extreme weather. A new Neighborhood Access and Equity Grant Program includes support for transportation projects and planning to protect against severe weather events.