Inflation Reduction Act: One Year Later
August 16th, 2023 marks one year since the Inflation Reduction Act was signed by President Joe Biden. With over $110 billion in clean energy manufacturing investments in the last year alone, the IRA has re-energized a sector of the economy that will forever shape the long term climate goals of the US and the world. The IRA has also provided tax credits for businesses that invest in clean energy. This has led to an increase in clean energy investment, which is expected to help reduce greenhouse gas emissions and create jobs. We applaud the progress that has been made so far and will continue to advocate for continued investment in all environmental initiatives.
The act was a significant step forward in many regards, but some of the most significant for us were the investments in EV development and roll out. For example, the act has extended the electric vehicle tax credit, which provides a credit of up to $7,500 for the purchase of an EV. It introduced a used EV credit, along with a new tax credit for businesses that install charging stations for EVs. The Alternative Fuel Refueling Property tax credit extends the EV charger tax incentive for ten years — through December 31, 2032. This credit is worth up to $30,000 per charging station. This will go far in allowing EV growth to better match infrastructure growth and development and it’s a great step forward in making EV charging more affordable and accessible to all. The IRA has also invested in research and development for EVs. This funding is expected to help develop new technologies that will make EVs more affordable and efficient. All of these components of the IRA will lead to the sale of an additional 500,000 EVs in 2023 as expected by the IRA.
As seen in the picture, our own Bruce Cole met with United States Secretary of Energy, Jennifer Granholm, in town halls in South Carolina and North Carolina. The inclusion of the EVA represents a great step forward for the collaborative nature of many projects we’ll be working on!