The Inflation Reduction Act’s tax credits and other private sector incentives will be marketed by Treasury Secretary Janet Yellen on Tuesday in North Carolina, where she will assert that they will lower consumer energy costs and greenhouse gas emissions across the country.
The agreement, which was signed into law by President Joe Biden in August and includes $369 billion in funding for domestic energy projects and the fight against climate change, is the largest in terms of climate expenditures ever enacted in the United States. The investment, which will be made at the Cypress Creek Renewables facility close to Durham, is expected to put the US on a “strong trajectory” toward considerably decreasing greenhouse gas emissions by the end of the decade, according to Yellen.
The act includes money-saving provisions that are anticipated to result in lower energy bills for households, such as thousands of dollars in tax incentives and rebates for electric vehicles and home efficiency improvements, such as energy-efficient skylights, water heaters, and solar panel installation. However, Yellen is anticipated to state that the government will also look to the business sector to help it reach its climate targets by cutting emissions by at least half from 2005 levels by 2030.
Excerpts from her proposed speech include that “government must specifically offer the fundamental framework and long-term stability that businesses need to invest at scale and drive the transition toward a clean energy future.”
According to Yellen’s comments, the new law will encourage “a large mobilisation of private investment into the renewable energy sector.”
“This investment is anticipated to significantly drive down the prices of producing sustainable energy when combined with the company tax credits. In turn, this is anticipated to help lower retail electricity bills as the law electrifies a larger portion of the American economy, according to speech excerpts from her.