The Inflation Reduction Act in its first year

The Inflation Reduction Act has underscored the potent relationship between economic advancement and environmental sustainability. US Department of Energy photo.

This article was published by the US Department of Energy on August 15, 2023.

In a global economy grappling with fiscal uncertainties and environmental challenges, President Biden’s Inflation Reduction Act emerged, not only addressing inflation concerns but also laying the groundwork for a sustainable future. Here’s how it’s shown up for Americans in its first year.

Jumpstarting a Clean Energy Industrial Revolution

In the first year of the Inflation Reduction Act, the country witnessed a revolution in the clean energy sector. Embracing clean energy isn’t just a matter of environmental stewardship; it’s also a strategic move for economic growth. By funnelling an historic amount of resources into renewable energy technologies, energy-efficient infrastructure, and sustainable transportation, the nation has enjoyed a surge in job creation and the expansion of businesses in the clean energy sector.

Here are a few numbers: over 75,000 new jobs have been created in the battery supply chain. There are over 80 new or expanded electric (EV) component or assembly plants, and solar energy investments have amounted to enough solar power for 12 million additional homes each year.

The Inflation Reduction Act has underscored the potent relationship between economic advancement and environmental sustainability, positioning the nation at the forefront of a global movement toward a cleaner and safer future.

To learn more about how the IRA and Bipartisan Infrastructure Law are empowering communities and industries across the nation, check out our investment maps >>>

Supercharging a New Clean Energy Economy

Emerging from the broader Biden Investing in America Agenda in 2022, DOE’s Office of Infrastructure was a visionary step towards rebuilding and modernizing the nation’s critical infrastructure. It serves as the demonstration and deployment arm of the Department of Energy (DOE), tasked with stewarding billions in historic investments from the Inflation Reduction Act and the Bipartisan Infrastructure Law to renew our nation’s infrastructure, rebuild domestic manufacturing, create millions of good-paying jobs, address climate change, and increase American competitiveness.

Investing in All Americans

One of the most immediate and personal impacts of the Inflation Reduction Act has been the savings it has brought to American households. The law includes tax credits to help Americans invest in money-saving energy equipment and energy-efficient upgrades – such as heat pumps, rooftop solar panels, and new and used electric vehicles. State rebate programs will also help make additional purchases like electric stoves and certain clothes dryers and water heaters more affordable. These programs, currently funded through 2033, are expected to save consumers up to $1 billion annually and support an estimated 50,000 jobs in the U.S.

Provisions in the Inflation Reduction Act also direct targeted support to underserved and overburdened communities, as well as lower-income households. These efforts are geared towards reducing the adverse health impacts of pollution and mitigating the impacts of the climate crisis on communities that have historically been overlooked, excluded, or burdened in the energy sector. The road to a clean energy future means ensuring that all communities can equitably share in its benefits

As we look ahead, this legislation is a beacon of hope for a more sustainable and resilient future. By harnessing innovation, collaboration, and strategic investments, the Inflation Reduction Act has set the stage for continued growth and positive change.

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