The Inflation Reduction Act could cut the United States’ annual greenhouse gas emissions by as much as 41% by 2030, bringing the nation’s overall target of a 50%-52% emissions reduction within arm’s reach. Delivering on this promise, however, will require an economywide investment in clean technology not only by federal, state and local governments, but by businesses and individual Americans as well.
To encourage widespread development and uptake of these technologies, the Inflation Reduction Act includes numerous tax credits and other financial incentives for both individuals and businesses. These include investment and production tax credits to catalyze the domestic renewable energy industry; rebates for green-home upgrades like heat pumps and energy-efficient retrofits; tax credits for buying qualifying electric vehicles; and more. The ultimate climate impact of the Inflation Reduction Act hinges on the extent to which U.S. citizens and the private sector take advantage such programs.