May 18, 2024 1:51 pm
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The Inflation Reduction Act’s Impact on Climate Change

AP Photo

Staff Writer

The Inflation Reduction Act (IRA) was recently passed by Congress and is now expected to be signed by President Joe Biden. The bill, a key part of the President’s agenda, allots the largest federal clean energy investment in U.S. history. 

Initially, Senate Democrats had looked to invest $555 billion into clean energy, but after negotiations just about $370 billion will be invested. The investment will be used to expand transportation and electricity generation, grow renewable energy infrastructure, and provide tax credits for purchases of more fuel efficient options. 

In fact, $271 billion will be used to create tax credits and other incentives for individuals and corporations encouraging the purchasing of fuel efficient and environmentally friendly options. This includes a $7,500 credit for purchasing a new electric or hydrogen vehicle made in North America and $9 billion for homes that use electric appliances. Roughly, $35 billion will go towards restoring forestry and rural development. The rest of the $370 billion will go towards other efforts to reduce greenhouse gas and improve America’s fight against climate change. 

In April 2021, President Biden announced a target of reducing greenhouse gas emissions by 50% by 2030. The IRA aims to lower greenhouse gas emissions 40%, based on 2005 levels, just under the President’s previous goal. 

The legislation’s impact on mitigating climate change is a big win for Biden and Congressional Democrats.

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