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What are some of the advantages of the climate bill legislation for consumers and companies?

The new Inflation Reduction Act is set to be a big bonus for Americans for the second half of the year but what are some of its key aspects?

Update:
US House Speaker Nancy Pelosi speaks during a bill enrollment ceremony for H.R. 5376, also known as the Inflation Reduction Act.
BloombergGetty

The new Inflation Reduction Act is close to being fully ratified. It marks the culmination of months of Democrat negotiations and, although it is much less ambitious than previously envisioned, looks to be quite promising. Even in raw figures, it is estimated that there will around $1,800 of savings by the average household.

For consumers

The climate aspects of the bill will be an undoubted benefit for consumers in the long term. New funding of $400 billion is expected to reduce carbon emissions by 40 percent by 2030. This combines with the economic aspect by offering rebates and credits for those to better insulate their home or switch to an electric vehicle.

While there are limits on eligibility for those wanting to use the electric car credits, they are high. Single filers are eligible if their income is less thatn $150,000 annually while this figure is double for joint filers.

One of these plans would reward those who take steps to increase the energy effectiveness of their home with a payment of up to $4,000. Other grants apply families investing in solar power for their home

“For consumers, this is a sea change in the most positive of ways that will make our communities more resilient and help us keep our costs manageable,” Erin Duncan, vice president of congressional affairs at the Solar Energy Industries Association said, “We’re also going to create tons of jobs for our neighbors, or maybe for ourselves, so I think it’s really exciting.”

The bill makes a few changes to the US tax code, including adding a fifteen percent minimum corporate tax. Hopefully this will lead to further tax revenue brought into state coffers and further tax breaks can be offered to consumers.

For companies

According to Energy Innovation, up to 1.5 million new jobs are expected to be created by the act. There are new tax cuts for companies for the production of solar power as well as billions in support for manufacturing facilities that cut their emissions.

Electric car companies can expect a boost too. With the credits available for people looking to switch to electric vehicles, it can be expected that comapnies like Tesla will be selling more vehicles in the coming years.

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