Inflation Reduction Act will bring benefits to Nevada

The Inflation Reduction Act, landmark legislation signed into law last year by President Joe Biden, is a boon to Nevada. Citizens’ Climate Lobby, a nonpartisan, nonprofit grassroots advocacy organization focused on national policies to combat climate change, has published a comprehensive review of all the benefits this law brings to our state.

Among our findings is that nearly every sector of Nevada’s economy will benefit.

For example, the law promises to lower our energy costs by making it more affordable for Nevada families to purchase energy-efficient appliances and save money on their utility bills each month. Low- and moderate-income households are eligible for rebates of up to 100% of the cost of these purchases. There are also rebates for households to make repairs and improvements to single-family and multifamily homes that increase energy efficiency. And there are tax credits covering 30% of the costs to install solar panels and battery storage systems or upgrade heating and cooling equipment. No income limits apply for these tax credits.

Good-paying jobs are also likely to result from the Inflation Reduction Act. In 2021, there were already 32,378 Nevada workers employed in clean-energy jobs. The Inflation Reduction Act will expand these opportunities by bringing an estimated $2.7 billion of investment in large-scale clean power generation and storage to Nevada between now and 2030. It provides a historic set of tax credits that will create jobs across solar, wind, storage and other clean-energy industries. There are additional tax incentives for businesses that pay a prevailing wage, so that Nevada workers earn a good paycheck as we build the clean-energy future in America.

Domestic manufacturing will receive a boost as well. Manufacturers employ 60,700 workers in Nevada, and the law incentivized making the technologies of the future here at home. Investments in programs like the new Advanced Industrial Facilities Deployment Program will support local economies, strengthen supply chains and position the United States to lead the growing global market for clean steel, aluminum, cement and more.

Small businesses will also benefit. Nevada is home to 297,183 small businesses, representing 99.2% of all businesses in the state, and the law will help them save money. Commercial building owners can receive a tax credit up to $5 per square foot to support energy efficiency improvements that deliver lower utility bills. Other programs that will benefit small businesses include tax credits covering 30% of the costs of installing low-cost solar power and of purchasing clean trucks and vans for commercial fleets.

The IRA will also make it easier and cheaper to purchase an electric vehicle, with upfront discounts up to $7,500 for new EVS and $4,000 for used ones, helping middle-class Americans skip the gas pump and save on fuel costs. Nevada recently submitted a state plan for using funds from Biden’s Bipartisan Infrastructure Law to build out EV charging stations along highways, helping hundreds of thousands of eligible Nevadans take full advantage of these discounts while contributing to a cleaner and healthier environment.

We know our air quality needs improvement and cleaner air will benefit us all. The IRA will significantly reduce pollution, resulting in 100,000 fewer asthma attacks in America in 2030, and position the U.S. to achieve Biden’s climate goals.

Lowering greenhouse gas emissions will not only avoid costly climate impacts from more extreme weather, but also improve local air quality — preventing premature deaths and reducing symptoms of asthma and other respiratory illnesses.

In addition to reducing pollution, the IRA will benefit communities most in need of cleaner air, with environmental justice block grants, investments for cleaner buses and trucks, and a Clean Energy and Sustainability Accelerator that will prioritize emissions-reducing projects in disadvantaged communities and fund state and local green banks like the Nevada Clean Energy Fund.

Rural residents will also enjoy benefits. The IRA supports climate-smart agriculture practices, which will help Nevada’s 3,400 farms lead on climate solutions and reward their stewardship. Electric cooperatives, which serve about 40,000 homes, businesses and other customers in Nevada, will for the first time be eligible for directpay clean-energy tax credits. And this legislation dedicates investments for rural electric cooperatives to boost resiliency, reliability and affordability, including through clean energy and energy efficiency upgrades.

Persistent drought and rising average temperatures affect everyone in our state. The IRA will help increase resiliency to help safeguard us from the worst effects of these climate impacts. In Nevada, tens of thousands of people live in affordable housing units that are eligible for upgrades like flood-proofing and storm resistance, as well as clean energy and electrification. A new Neighborhood Access and Equity Grant Program includes support for transportation projects and planning to protect against flooding, extreme heat and more.

Because the IRA is still so new, and we are faced with a new Congress, implementation of these benefits will likely be slow. It’s imperative that we make sure our members of Congress are aware of the benefits and take necessary action to secure and hasten their implementation. With climate-driven extreme weather events occurring with ever-greater frequency, there is no time to waste. Contact our senators and representatives and urge them to keep us informed on how to access these IR A programs as they become available.