Low-income families can benefit from the Inflation Reduction Act by making expensive upgrades to their homes or purchasing electric cars, according to Energy Secretary Jennifer Granholm.
Low-income families could benefit from thr Inflation Reduction Act. (Photo: Jones & Roth)
Tax Credit for Energy-Efficient Appliances
In an interview with The Washington Post, Granholm said that tax credits are available for energy-efficient appliances, electric cars, and electric battery production. The act, signed into law by President Biden in August, also offers tax credits for those who install solar panels or small wind turbines, with a tax credit of up to $7,500 available for electric vehicles.
Granholm stated that tax credits for upgrading a home’s heating and cooling system or installing a heat pump could be significant, with greater benefits available to low or moderate-income families, according to a published article in DAILY CALLER.
However, the cost of such upgrades can be high, with heat pumps ranging from $3,600 to $9,471 and installation costs up to $30,000, according to HVACDirect.com and ThisOldHouse.com.
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Low-Income Families Will Benefit from the Tax Credits
While some have criticized the tax credits for disproportionately benefiting the wealthy, Granholm argued that low-income families could benefit greatly from them. She said that tax credits for installing solar panels or wind turbines can help households generate their own energy, while tax credits for installing batteries can help make homes more resilient. The total tax credit for clean energy opportunities, appliances, and equipment can be up to $18,000.
Critics argue that the tax credits do not actually reduce emissions or save people money and that they only benefit those who are required to file income tax returns. A spokesperson for Republican Rep. Cathy McMorris Rodgers of Washington, who chairs the House Energy and Commerce Committee, told the Washington Times in January that the programs disproportionately benefit the wealthy.
The median household income in the United States is $70,784, according to the United States Census Bureau. Tesla solar panels can cost anywhere from $9,600 to over $48,000, according to SolarReviews.com. The Energy Department did not immediately respond to a request for comment from the Daily Caller News Foundation.
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