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The New Climate Laws’ Tax Credits for Homeowners Are Crazy Powerful

A new study in Energy Policy does the math.

A heat pump.
Heatmap Illustration/Getty Images

The Inflation Reduction Act and the Infrastructure Investment and Jobs Act — better known as the Bipartisan Infrastructure Law — are together filled with dozens of financial incentives to help regular Americans switch to clean technologies. The IRA, in particular, is the largest investment in confronting climate change the country has ever made. That work is happening, in no small part, on the (literal) home front.

A new study published in the journal Energy Policy authored by researchers from Vanderbilt University, shows that while only about 12% of climate and energy funds in the IRA and 5.7% in the BIL target voluntary household actions, they could leverage 40% of the cumulative emissions reductions under those laws.

That’s a big return on investment, and a rare sign that regular citizens might, after all, have some level of agency in helping solve a problem that can often feel beyond our grasp. The authors note that getting to that level of emissions reduction is perhaps easier said than done — navigating the process of figuring out eligibility for tax credits, determining cost savings, and actually contracting with local professionals to install all that clean tech is a pretty significant undertaking, and all those roadblocks could get in the way of that best case scenario. The authors’ estimate also accounts for all households in the country, whereas it’s much easier (and more appealing) for an owner of a single-family home to make those kinds of changes to their building than, say, a landlord who won’t see any direct benefits from improving a building they’ve rented out.

A lot of pain points, then. But still, in the face of a huge and abstract problem, knowing that individual actions do make a difference is no small thing.

Want to take advantage of some of these incentives? We’ve got you covered on at least a few of those fronts: my colleague Emily has written a guide to decarbonising your home with the IRA, and Robinson has a car buyer’s guide to the 2024 EV tax credit. That 40% emissions reduction goal will take a lot of individual investment; those guides (and more to come!) are good places to start.

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Neel Dhanesha profile image

Neel Dhanesha

Neel is a former founding staff writer at Heatmap. Prior to Heatmap, he was a science and climate reporter at Vox, an editorial fellow at Audubon magazine, and an assistant producer at Radiolab, where he helped produce The Other Latif, a series about one detainee's journey to Guantanamo Bay. He is a graduate of the Literary Reportage program at NYU, which helped him turn incoherent scribbles into readable stories, and he grew up (mostly) in Bangalore. He tweets sporadically at @neel_dhan.

Sparks

Why the Vineyard Wind Blade Broke

Plus answers to other pressing questions about the offshore wind project.

A broken wind turbine.
Illustration by Simon Abranowicz

The blade that snapped off an offshore turbine at the Vineyard Wind project in Massachusetts on July 13 broke due to a manufacturing defect, according to GE Vernova, the turbine maker and installer.

During GE’s second quarter earnings call on Wednesday, CEO Scott Strazik and Vice President of Investor Relations Michael Lapides said there was no indication of a design flaw in the blade. Rather, the company has identified a “material deviation” at one of its factories in Gaspé, Canada.

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Sparks

Trump’s Suspicious Pivot on EVs

Elon Musk pledged a huge campaign donation. Also, Trump is suddenly cool with electric vehicles.

Trump’s Suspicious Pivot on EVs

Update, July 24:Elon Musk told Jordan Peterson in an interview Monday evening that “I am not donating $45 million a month to Trump,” adding that he does not belong to the former president’s “cult of personality.” Musk acknowledged, however, that helped create America PAC to promote “meritocracy and individual freedom,” and that it would support Trump while also not being “hyperpartisan.”

When former President Donald Trump addressed a crowd of non-union autoworkers in Clinton Township, Michigan, last fall, he came with a dire warning: “You’re going to lose your beautiful way of life.” President Biden’s electric vehicle transition, Trump claimed, would be “a transition to hell.”

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Sparks

Wind Is More Powerful Than J. D. Vance Seems to Think

Just one turbine can charge hundreds of cell phones.

J.D. Vance.
Heatmap Illustration/Getty Images

It’s a good thing most of us aren’t accountable for every single silly thing we’ve ever said, but most of us are not vice presidential running mates, either. Back in 2022, when J.D. Vance was still just a “New York Times bestselling author” and not yet a “junior senator from Ohio,” much less “second-in-line to a former president who will turn 80 in office if he’s reelected,” he made a climate oopsie that — now that it’s recirculating — deserves to be addressed.

If Democrats “care so much about climate change,” Vance argued during an Ohio Republican senator candidate forum during that year, “and they think climate change is caused by carbon emissions, then why is their solution to scream about it at the top of their lungs, send a bunch of our jobs to China, and then manufacture these ridiculous ugly windmills all over Ohio farms that don’t produce enough electricity to run a cell phone?”

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