Joe Biden

FACT SHEET: President Biden's Investing in America Agenda is Helping American Families Across the Country Save Money

May 13, 2024

Through President Biden's historic Investing in America agenda, the Biden-Harris Administration is cutting costs for hardworking American families in every corner of the country. President Biden's Inflation Reduction Act, the largest-ever investment in clean energy and climate action, is already helping lower both the upfront cost of installing clean energy technologies and reducing housing costs by lowering monthly energy bills and increasing efficiency after installation. Tax credits that save families up to 30% off home energy technologies like heat pumps, rooftop solar, and energy efficiency improvements like insulation are currently available—and Americans were able to claim those enhanced tax credits for the first time on Tax Day in April:

  • Families who install an efficient electric heat pump for heating and cooling can receive a tax credit of up to $2,000 and save an average of $500 per year on energy bills.
  • Families who make other energy efficiency improvements can receive tax credits worth up to $500 for doors, $600 for windows, $150 for a home energy audit, and up to 30 percent off the cost of new insulation—a total of up to $1,200 per year in tax credits.
  • Families who install rooftop solar, geothermal or battery storage at home can save up to 30 percent of the cost of the installation via a tax credit. For rooftop solar, that can save Americans an average of $7,500 off the cost of installation and nearly $400 per year on their energy bills.

In addition, several states are expected to launch their home energy rebate programs, funded by the Inflation Reduction Act, this summer. These rebate programs will help low- and middle-income families buy and install cost-saving electric appliances and make energy efficiency improvements to save money on their home energy bills. These rebates can be paired with the existing tax credits to further lower costs for Americans. Already, 14 states have submitted applications to the Department of Energy (DOE) for their rebate programs, and DOE has approved New York's application. You can track your state's progress toward setting up its rebate program here.

Today, the Biden-Harris Administration is convening federal partners, nonprofits, consumer lending organizations, and philanthropies for the second time to drive consumer education and outreach efforts on the Inflation Reduction Act's consumer home energy savings tax credits and rebates. Today's convening specifically focuses on bridging gaps in financing to ensure that more low- and middle-income families can afford to install cost-saving clean energy at home.

The Biden-Harris Administration is making new federal resources about Inflation Reduction Act home energy programs available for consumers, local officials, and advocates. In addition, nonprofit organizations are announcing commitments to expand their outreach and financing efforts.

A majority of Americans support the cost-savings programs advanced by the Biden-Harris Administration—according to a July 2023 poll, 65 percent of Americans support tax credits to install solar panels and 54 percent support tax credits to buy heat pumps. Yet Republicans in Congress continue to fight to repeal these popular provisions, which would increase costs for hardworking Americans, offshore jobs, and worsen the climate crisis. President Biden will continue blocking Congressional Republicans from repealing these critical programs, which are cutting costs for American families and protecting the planet for current and future generations.

Congressional Republicans have no plan to lower costs. In fact, their plan raises cost for working families by:

  • Increasing costs for health care, prescription drugs, and insulin by repealing the Inflation Reduction Act and Affordable Care Act and slashing Medicare.
  • Increasing utility bills and energy costs by repealing the Inflation Reduction Act.
  • Raising taxes for middle-class families by repealing the Inflation Reduction Act and the Affordable Care Act.
  • Raising housing costs by cutting rental assistance and programs to build new homes.

The Biden-Harris Administration Is Helping American Families Access Clean Energy

Since the last consumer-focused convening in February, the federal government has made new resources available for Americans to learn more about how to save money through the Inflation Reduction Act:

  • In April, the Environmental Protection Agency (EPA) announced selectees for $20 billion in awards from the Inflation Reduction Act through the Greenhouse Gas Reduction Fund, which will stand up a national clean energy financing network. Many of those selectees are community lenders that will help bridge financing gaps for consumers so they can afford the full cost of installing clean energy technologies at home.
  • The Department of Energy (DOE) has published a consumer bill of rights for states to protect consumers as they launch their home energy rebate programs.
  • DOE has published a door hangerdetailing the tax credits consumers can receive from the Inflation Reduction Act for installing heat pumps or rooftop solar, making energy efficiency improvements, or buying an electric vehicle.
  • DOE's Office of State and Community Energy Programs is using the Low-Income Energy Affordability Data (LEAD) tool to help local governments, advocates, and funders identify low-income and high energy burden communities that can benefit most from the Inflation Reduction Act and other home energy programs.
  • EPA's ENERGY STAR program is kicking off a multi-year national consumer educational campaign to generate excitement about the clean energy future to inspire audiences to learn more and take action leveraging incentives included in the Inflation Reduction Act. The campaign builds awareness with an inspirational video and is supported with social media ads and display banners – all driving to energystar.gov/HomeSavings for zip-code level information about available incentives.

Expanding Consumer Outreach and Financing Efforts Across America

Today, several nonprofits, universities, and community organizations are announcing new and expanded efforts to reach consumers across the country on the Inflation Reduction Act's consumer home energy programs:

  • Civic Nation will launch a national public education campaign to help consumers learn about and benefit from the Inflation Reduction Act's consumer tax credits and rebates as they become available. The campaign will convene a diverse coalition of stakeholders and trusted messengers from across sectors, including national nonprofits, companies, media platforms, community-based organizations, elected leaders, faith-based groups and more. The campaign will mobilize this coalition of trusted messengers around major moments beginning this summer.
  • What Works+ and Invest in Our Future are announcing that philanthropic organizations have supported clean energy work in nearly 500 places across the United States, and are more than halfway toward achieving a goal of supporting 1500 projects, including consumer-focused activities.
  • WorkMoney launched a one-stop shop for cost savings that consumers can access online, as well as by phone and text message. WorkMoney is offering personalized, human support to connect individuals to new and/or underutilized government programs, including existing federal tax credits and upcoming state rebates. As part of this launch, WorkMoney is scaling its public communications effort across the country to educate the public and the organization's 6+ million members about this service that will put money back in consumers' pockets.
  • The Community Foundation Climate Collaborative (CFCC)'s network of 50+ community foundations across the country has shared best practices about how to raise awareness about clean energy opportunities for the communities they serve. CFCC has hosted a series of learning sessions on federal funding topics including time-sensitive climate funding opportunities, Direct Pay, and federal application readiness. Through its five Regional Action Networks, CFCC has also held regional meetings to provide education on federal funding opportunities and promote technical assistance opportunities, and will continue to host upcoming workshops focused on how schools, local governments, community institutions and non-profit partners can take advantage of direct pay to implement clean energy projects faster and at lower cost.
  • The McKnight Foundation is funding a number of technical assistance initiatives, including the Chisholm Legacy Project – to support Black-led cities across the Midwest to apply for federal funding and access Inflation Reduction Act incentives; CALSTART – to help municipalities across the Midwest leverage federal resources to adopt zero-emissions vehicle technologies; Clean Energy Resource Teams (CERTs) – who has deployed a network of over 900 "ambassadors" across Minnesota sharing IRA-related resources with their local communities; and a Minnesota Technical Assistance Collaboration – a statewide network of technical assistance providers to facilitate deep coordination in the field, share resources, and align strategies to prioritize and maximize their support of BIPOC communities, rural local governments, and low-wealth communities.
  • Rewiring America, a nonprofit working to equitably electrify our homes, businesses, and communities, has developed free tools for homeowners and renters to access electrification incentives that help make important home and vehicle upgrades more affordable, including a calculator that features comprehensive federal, state, local, and utility information in eight states, with broad coverage across the country by the end of the year. In addition, Rewiring America is part of the Power Forward Communities coalition that was awarded $2 billion from the Greenhouse Gas Reduction Fund to help weatherize and decarbonize American homes. The coalition is committed to investing at least 75 percent of financial assistance made possible by this grant in low-income and disadvantaged communities — nearly twice the EPA's Justice 40 mandate.
  • University of New Hampshire is working with Greenhouse Gas Reduction Fund awardees to develop training and shared infrastructure that will help more borrowers quickly and cost-effectively access the financing they need to make home energy transitions.
  • MariSol Federal Credit Union, based in Phoenix, Arizona, is educating its members and local home energy contractors about the Inflation Reduction Act's consumer incentives, and helping members take advantage of the programs through its Smart E Energy Efficient Loan and Smart E Solar Loan products

Joseph R. Biden, FACT SHEET: President Biden's Investing in America Agenda is Helping American Families Across the Country Save Money Online by Gerhard Peters and John T. Woolley, The American Presidency Project https://www.presidency.ucsb.edu/node/371867

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