Hallie Bowie, architect, LEED Green Associate

Good news! “The Inflation Reduction Act (IRA) of 2022 makes the single largest investment in climate and energy in American history, enabling America to tackle the climate crisis, advancing environmental justice, securing America’s position as a world leader in domestic clean energy manufacturing, and putting the United States on a pathway to achieving the Biden Administration’s climate goals, including a net-zero economy by 2050”, according to the U.S. Department of Energy. But the IRA doesn’t fully reflect our UU values. What does all this mean for you? 

1. You can make plans to take advantage of the tax credits and rebates to improve the energy efficiency and comfort of your home and reduce your personal use of the fossil fuels that and driving the climate crisis.
2. You can hold your local and state officials accountable for making good use of the IRA funds going to local governments, so that they move us as quickly and efficiently as possible towards an economy that produces as much renewable energy as it uses.
3. You can continue advocating for more equitable climate policies. According to Rashid Shaika, PhD of the Health Effect Institute in Boston, the IRA does not include international funding, meaning it does not address impacts on those who are most affected and least responsible for the climate crisis. It also fails address the systemic inequities which have characterized our energy and climate policies for decades. Black, indigenous, and people of color (BIPOC) communities have faced disproportionate harm from energy access and fossil fuel usage, and have seldom been included in conversations leading to policy decisions. While the IRA is definitely good news, it is important to continue working so that our new energy future is also a more equitable future.

The 8^th Principle Learning Community’s September meeting focused on the intersection of racial, environmental, and climate injustices. It included presentations from the BIPOC Caucus on Climate Justice, Side with Love, UU’s for Social Justice, and the UU Ministry for the Earth. As you can see, there are many resources and opportunities for engaging with other UU’s on the national level  on this work. One such resource is the Side with Love Action Center.

Some of the IRA provisions you may want to take advantage of for yourself include 

• Tax credits for home improvements including heat pumps (which you can use to replace aging air conditioners), energy efficient water heaters (such as heat pump water heaters), energy audits, and electric panel upgrades. Credits are available in 2022, but the amounts and limits will be higher starting in 2023.
• Tax credits for home renewable energy systems like solar panels will increase to 30% in 2023, from the current 26% credit.
• Tax credits for purchasing an electric vehicle- up to $7500- as well as for EV charging equipment.
• High efficiency electric home rebates on energy efficient electric appliances such as induction cooktops, heat pump water heaters, and air source heat pumps for space heating and cooling.

While a number of the credits are available in 2022, some increase starting Jan. 1, 2023, so plan accordingly. Taking advantage of these incentives is as simple as listing your eligible purchases on your tax return. When the rebates become available, they may be even easier than the tax credit because they can be applied as a discount at the point of sale.

One of the reasons these incentives are so important is that they will encourage us to check out equipment that is a little different than we are used to buying. We don’t buy new furnaces or water heaters very often, so when we do, we are inclined to buy the same kind we bought before. In Ohio that often means natural gas, and more fossil fuel emissions for as long as the new equipment lasts. These credits and rebates will help people to consider newer technologies that can save them money, make their homes more comfortable, and improve the air quality in their homes, as well as being better for the environment. You don’t need to replace equipment that is working well now, but it is a good idea to start planning for when your heating system, air conditioner, or water heater will be ready for replacement. That way you won’t have to choose equipment quickly just to get the heat going again. Meanwhile, keep advocating for more equity in environmental policy!