President Biden signed The Inflation Reduction Act of 2022 into law on August 16. This historic legislation will make a $433 billion investment in climate and clean energy that will propel our nation forward in the fight to address climate change, accelerate the development of sustainable energy alternatives to fossil fuels and create millions of jobs.
Many of the solutions proposed in the Act offer a slew of substantial tax credits and direct support to encourage investment in renewable energy, clean transportation and other decarbonization projects such as green hydrogen and sustainable aviation fuel.
The Act includes over $200 billion of incentives that will speed up and expand the development of clean energy and strengthen our energy grid. For example, per the Environmental Defense Fund, a nonprofit environmental advocacy group, the extension of previous incentives for an additional 10 years will give renewable energy providers across the U.S. the certainty they need to build and expand clean energy projects in the long term.
The Fund also reports “the bill will invest $60 billion in environmental justice, an important step toward addressing legacies of disinvestment and pollution burden in mostly Black, Latino, Indigenous and low-income communities – and ensuring these communities benefit from a clean energy future.” The bill includes bonus tax incentives to develop clean energy resources in low-income communities and areas experiencing a transition away from fossil fuels as well. It is the largest investment in combating climate change ever passed by Congress.