John,
This law is the largest single investment in combating climate change in American history. It also includes provisions that can save you money.
Here’s a breakdown of how you can save money with the Inflation Reduction Act (IRA). For more on this story, here’s a full-length article from the Washington Post.
★ Lower energy costs
The IRA includes $80 billion in rebates, including as much as $14,000 in money back, helping households pay for green-energy upgrades to their homes.
“Subsidies cover a range of improvements, including efficient heat pumps ($8,000 back per household), electric water heaters ($1,750), and electric cooktops ($840). All of this is designed to save you money on energy bills, which have risen faster than most other expenses in the past year. Homeowners can also receive a 30 percent credit for installing solar panels.”
Estimates from Rewire America say this could save households a whopping $1,840 a year on energy costs.
★ Tax credits for switching to electric vehicles
The new round of green-energy incentives includes a much-hyped $7,500 credit for people who buy new electric vehicles beginning next year. Critically, the legislation also offers a $4,000 credit for people who buy used electric cars.
★ Faster tax refunds
The most immediate benefit for American families in the IRA, according to the Post:
Faster tax refunds and more responsive IRS agents, thanks to $80 billion in additional funding to the Internal Revenue Service over 10 years. For individuals still waiting for their 2021 or 2022 tax returns to be processed — that’s likely to happen a lot faster, too.
★ Cheaper prescription medications for seniors
The IRA allows Medicare to negotiate prices with pharmaceutical companies, beginning with 10 prescription drugs in 2026 and 20 by 2029. More immediately, pharmaceutical companies will have to pay rebates starting next year if they raise medication prices faster than inflation.
This does not include Americans, not on Medicare – which is why Humanity Forward is still advancing bipartisan legislation to combat high prices for prescription drugs like insulin.
It’s important to take inventory after a key win like this law, but we’re still focused on the other causes that drive us forward. Thanks for your support.
If you can, a donation to Humanity Forward would ensure our work to advance evidence-based legislation for the American people can continue. Can you chip in $10 today to keep Humanity Forward at the forefront of policy-making decisions on Capitol Hill?
