The Inflation Reduction Act Turns 2
It’s been exactly two years since Congress passed the most comprehensive climate change response bill in U. S. history. Named The Inflation Reduction Act in an effort to give coal-baron Sen. Joe Manchin political cover to vote for it, the IRA promised to channel $370 billion or more into climate solutions from direct grant programs to manufacturing stimulus to tax credits and rebates for homeowner, nonprofit, and small-business climate action. I expect plenty of expert assessments on the IRA’s effectiveness at this anniversary, such as this assessment by the nonpartisan Center for American Progress, but here are a few humble thoughts from the field.
- Is the juice worth the squeeze? I thought when the IRA made the 30% tax credit directly payable to nonprofits and faith, spiritual, or religious communities, we would be inundated with requests to install solar systems. Instead, though savings will outpace even current interest-rate loans, only three congregations went solar in 2023, and few have signed for 2024. It appears that faith, spiritual, or religious communities are so risk-averse that even the chance to both live out their values and save won’t overcome borrowing concerns. If your community will risk for the climate, MNIPL can help you save big with solar. I am excited that we have a renewed no-cost option that takes all upfront costs off the table. Check it out here.
- People of conscience want to act. Invitations to MNIPL to speak on the IRA have swelled over the last year, and many in the growing crowds who show up have a sense of changes they want to make to reduce carbon from better insulation to air source heat pumps to electric bikes and vehicles. From the Arrowhead to the Twin Cities and St. Cloud to Rochester, MNIPL has guided hundreds of people to resources that break down the tax credits and utility rebates. We partner with organizations such as Citizen Utility Board and Center for Energy and the Environment to keep current on our information. We can help you decarbonize and save.
- Governing happens slowly. Some parts of the IRA are still not active two years into its passage. Minnesota has not rolled out its program to administer federal IRA rebates. In some cases, this has slowed action because people are waiting for a possible rebate that might be available. MNIPL has officially abandoned any wait and see approach. Act now! The earth can’t wait, and there’s no promise you’ll be eligible for a rebate. In fact, we applaud the rumors that these rebates will be aimed at low-income households and used up quickly helping them. That’s climate justice in action.
- Still too timid. As groundbreaking as the IRA is, there is still so much that it does not address. It supports false solutions such as carbon capture/sequestration. It leaves in place enormous subsidies to keep fossil fuels burning. It does not address international fair share obligations to countries whose pain and suffering are the price of U.S. affluence bedrocked on fossil fuels. It includes indigenous nations in decarbonization incentives, but it does not address the underlying healing that needs to happen through true reparations.