The Inflation Reduction Act (IRA), passed in August 2022, aims to tackle the climate crisis issue, advance environmental justice, and make the United States one of the leading producers of clean domestic energy. The act also is a pathway for the nation to achieve the goals set by president Joe Biden.
In order to make the dreams of a cleaner environment and also to develop a sense of the green environment in people, the government has also found some new ways to maximize involvement in the cause.
According to the newly formulated plans, the government has decided to give people who contribute actively towards the change an amount as recognition for their part.
The Inflation Reduction Act (IRA) has made some serious contributions towards the nation’s goal of fighting climate change.
It is estimated that around $369 billion is being dedicated by the United States government to fighting issues like energy security, taking measures towards climate change, and also in reducing the federal deficit.
The act is also said to bring drastic decreases in energy costs as there are different tax credits and subsidies introduced by the act.
The Inflation Reduction Act is the largest piece of federal legislation to ever address the issue of climate change.
The bill aims in reducing the cost of energy production by making sure that improvements are made in home energy efficiency. In order to increase the accessibility to energy-efficient technologies, rebates have been arranged by the government.
Using technologies like heat pumps, rooftop solar, high-efficiency electric heating, water heating, and many different technologies will ensure a 10-year of consumer tax credits also.
The bill also puts forward different methods which aim in fighting the harmful effects that are brought up on the environment. Decarbonization is one among other measures taken by the government.
In order to encourage the practice, the government has issued tax credits, grants, and loans for industries and transportation sectors to the world towards decarbonization. The bill also is reported to include a sum of $14 billion, which will be dedicated to building biofuel infrastructure in rural areas.
Just like focusing on the bigger issue of environmental crisis and climatic changes, the bill also aids in social problems that need to be addressed.
One such issue is the lack of transportation between communities that are considered to be at a disadvantage.
Around $3 billion allocated to help such communities by reconnecting such communities through safe and affordable travel and also through different activities that will engage the communities.
The new act seems to bring the residents of Maine a new opportunity to earn a one-time payment which ranges between $840 and $8,000. Switching to clean energy will not only be better in the long run but also comes with a special payment from the government too.
There are three main programs through which Mainers can earn the stated amount. Keep on reading to know more about the three different programs;
◾ Electric Vehicle Tax Rebate
Maine is one of the American states that aims to bring down the effect of greenhouse gasses that contribute to severe climatic changes and environmental crises. The state has formulated different plans to tackle the issue and the introduction of light-duty electric vehicles is one such method.
The state has divided plans which will see almost 219,000 electric vehicles on the road by the year 20230.
The replacement of the traditional vehicle that uses fossil fuels with electric vehicles which cause comparatively less damage to the environment is a way to ensure their steps towards an eco-friendly society.
As per the new act, the people of Maine are entitled to a tax credit that can go as high as $7,500 upon their purchase of a new electric vehicle. The tax credit is not only applicable to the new vehicle but also to used vehicles but they do have a limit that is lower than the new ones.
For used vehicles, the limit is around $4,000. Before claiming the proposed offer, applicants just check whether they are eligible for the offer and the amount they can claim through it. Both these will depend upon the vehicle that they are planning to purchase.
As for the vehicle that is being purchased, it should also meet some criteria which are set by the officials. Some of the criteria are that the vehicle cannot be brought for real purposes and that it should be made by a certified manufacturer.
There are a few more criteria listed by the authorities. If you are someone who is planning to submit an application for this, then you should check out the Internal Revenue Service website, where the full criteria are listed.
Also Read:- Supplemental Security Income (SSI) Program
◾ Installation Of Smart Panels
Smart panels are devices that help in managing power distribution. As per reports, people who install smart panels have a chance of claiming up to $4,000 which is planned to be benign in mid-2023.
As for low-income homes, for whom the charges of buying a new smart panel are difficult, they have the chance to receive a 100 percent refund on the purchase of smart panels up to $4,000. As for middle-income houses, they also have a chance to cover 50% of their charge up to $4,000.
◾ Heat Pumps
Heat pumps are also one such device that is being promoted by the authorities of Maine. It is a device that can be used to produce both hot and cool air in homes. The pump provides the provision to change the hot, warm air from outside into cool air and also the same way around.
Installing a new heat pump will allow you to claim an amount of $8,000 by mid-2023.
In order to increase the usage of products like heat pumps and to reduce the unwanted use of energy, the government is also offering a reduction on the price of heat pumps up to $2,000 and if the product is a combined heat pump and air conditioner, then the discount can go as high as $8,000.
Citizens are also entitled to an offer of $840 if they install a heat pump cloth dryer.
If you are a citizen who has a chance of availing of the above-mentioned offers, make sure you qualify the criteria and apply for the benefits offered by the government.