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How the climate bill could save you money on electricity, cars and appliances – CNN

In addition to the US emissions reductions these will bring, there’s a lot in the bill that could change both how Americans power their homes and what kinds of vehicles they drive.

The bill contains a bevy of tax incentives a…….

In addition to the US emissions reductions these will bring, there’s a lot in the bill that could change both how Americans power their homes and what kinds of vehicles they drive.

The bill contains a bevy of tax incentives aimed at pushing consumers, developers, small businesses and others towards clean energy and more efficient energy usage — helping bring down the cost of buying electric vehicles, heat pumps, water heaters, rooftop solar panels and more.

These measures would be more comprehensive than existing weatherization programs, and several would be available to all households, not just low-income ones,” said Mark Wolfe, executive director of the National Energy Assistance Directors Association.

The tax credits work in another way to bring down costs: incentivizing cheaper clean electricity powered by renewables.

“There are people who are really on the front lines of the inflation crisis and how expensive fossil fuels are because of Putin’s invasion of Ukraine, and this bill will be delivering big energy savings for those people,” Leah Stokes, a senior policy advisor at Evergreen and associate professor of political science at the University of California, Santa Barbara, told reporters recently.

Here are the main pieces of the bill that help consumers save money.

Savings on buying an electric vehicle: The bill extends the current $7,500 tax credit for a new vehicle, as well as a $4,000 tax credit off a used EV. It also gets rid of the current cap that cuts automakers off tax credits after they’ve sold 200,000 EVs, and it is written so buyers can get an immediate discount at the dealership, instead of waiting weeks or months for their tax credit to come through.

Still, there’s a significant caveat: Automakers and consumers likely won’t be able to take advantage of this tax credit over the next few years. At the insistence of Democratic Sen. Joe Manchin, the tax credit was written in a way so that automakers are forced to move their EV supply chains away from China and to the US and countries where the US has free trade agreements. Vehicles must be built in North America, and EV batteries must also not come from countries like China.

As a result, US automakers likely won’t be able to offer the credit in the next few years as they try to build up their domestic supply chains, Democratic Sen. Debbie Stabenow of Michigan said.

The tax credit is also limited to trucks, vans and SUVs under $80,000, and other vehicles under $55,000, and has an income threshold for consumers.

Help installing more efficient air conditioning and heating equipment: The bill would provide Americans with tax credits to cover 30% of the costs …….

Source: https://www.cnn.com/2022/08/06/politics/tax-credits-energy-savings-climate-bill/index.html

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