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Inflation Reduction Act includes billions in clean energy funds for states

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President Joe Biden signs the Inflation Reduction Act, which has provisions aimed at slowing climate change. Photo by Bonnie Cash/UPI | <a href="/News_Photos/lp/891c79ed3d826519719da29bcb88dec7/" target="_blank">License Photo</a>
President Joe Biden signs the Inflation Reduction Act, which has provisions aimed at slowing climate change. Photo by Bonnie Cash/UPI | License Photo

Aug. 17 (UPI) -- Billions in clean energy investments will flow to states from the Inflation Reduction Act -- from large-scale power generation to tax credits and rebates for buying electric vehicles and energy-efficient appliances.

The White House said in signing the legislation, President Joe Biden aims to lower energy costs and create jobs.

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In New York, for example, the new law will provide $34 billion for large-scale clean power generation and storage by 2030. New York residents may also qualify for rebates on new electric appliances and heat pumps.

New York Gov. Kathy Hochul said the initiative will have major a impact on clean energy, beyond its provisions to lower healthcare costs.

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"A historic investment in green technology and climate resiliency will make a positive impact across our economy by creating jobs, lowering household utility costs and kick-starting the clean energy revolution," she said.

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In Florida, the clean-energy investment will be $62.7 billion through 2030. Funding will also boost rural resilience to extreme weather by adding floodproofing and other protective measures to affordable housing.

According to the United States Climate Alliance, the Inflation Reduction Act provides $27 billion to states and other entities for zero-emission technologies; $8.6 billion for states to help homeowners retrofit houses for energy efficiency; $5 billion to reduce pollution; $2.2 billion for forestry conservation programs; and $1 billion for adopting new building energy codes.

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The alliance consists of governors from 24 states that have pledged to collectively reduce greenhouse gas emissions by at least 26%-28% below 2005 levels by 2025 and at least 50%-52% below 2005 levels by 2030.

California will see a $21.2 billion investment in clean power generation and storage. Its 69,000 farms will benefit from climate-smart agriculture practices, according to the White House.

For the first time, electric cooperatives in California will be eligible for direct-pay clean energy tax credits. And money from the act will help rural electric co-ops boost resiliency, reliability and affordability, in part through clean energy and energy efficiency upgrades.

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The National Audubon Society said that by directing $370 billion toward speeding the clean energy transition, the Inflation Reduction Act will cut annual U.S. greenhouse gas emissions by about 1 million metric tons by 2030 and result in more rapid deployment of renewable energy.

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In Michigan, small business owners with commercial buildings will get tax credits up to $5 per square foot to support energy-efficiency improvements and up to 30% of the cost of installing solar power and buying clean energy trucks and vans for commercial use.

All states will benefit from the tax credits on electric vehicles and a combination of rebates and tax credits that encourage energy efficiency and clean energy investments.

Ohio will get $12.8 billion for the large-scale clean energy power generation and storage. Ohio domestic manufacturing will also get a boost from funds aimed at increasing U.S. manufacturing of clean energy and transportation technologies. That includes investments for a new Advanced Industrial Facilities Deployment Program the White House said will position America to lead a growing global market for clean steel, aluminum, cement and more.

Arizona will see IRA investments focused on strengthening forests and preventing wildfires, as well as tree-planting projects that will help protect communities from extreme heat.

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