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How the Inflation Reduction Act benefits you

The federal Inflation Reduction Act (IRA), signed into law Aug. 16, 2022, offers credits, rebates and grants to help reduce carbon emissions and energy waste. The IRA invests $370 billion to lower energy costs for families and small businesses, accelerate private investment in clean energy, strengthen supply chain operations and create good-paying jobs, the White House says.

Here are four ways the IRA may benefit you:

1. Take advantage of tax credits for new electric vehicles. The IRA offers tax credits ranging from $2,500 to $7,500 for the purchase of new electric vehicles (EVs). You may qualify if the EV:

  • Had its final assembly in North America.
  • Has a battery capacity of at least seven kilowatt-hours.
  • Is a fuel-cell vehicle and you meet certain income limitations.

2. Make energy-efficient improvements to your home. The Home Energy Rebate and High-Efficiency Electric Home Rebate programs may help you upgrade to more energy-efficient appliances when the funds become available. Households looking for assistance today may be interested in other federal programs, such as tax credits or the Weatherization Assistance Program.

3. Generate your own solar energy. The IRA includes a tax credit to cover 30% of the cost to install rooftop solar.

4. Grow your community with a tree planting event. The IRA allocates $1.5 billion to remedy environmental injustices. The funding is distributed through states, so the Department of Natural Resources Urban Forestry (Iowa) and Urban Forests (Wisconsin) offer grants to qualified organizations to plant trees in disadvantaged communities. Planting trees is one big way to tackle the harmful effects of climate change, make shade to help decrease energy use, improve water quality, protect wildlife and reduce greenhouse gases.

The IRA also supports the work Alliant Energy is already doing.

In Wisconsin, the IRA saved an estimated $138 million by allowing us to shift our Wisconsin solar projects from tax equity financing to traditional ownership. In Iowa, immediate incentives in the IRA were instrumental as we dropped the block price of our Cedar Rapids Community Solar project from $395 to $291. We’ll continue to find ways to help our Iowa customers through the IRA over the 10-year window of the bill.

The IRA expands access to clean, renewable energy for all our customers. Follow along with our progress as we turn our Clean Energy Blueprint into reality – both in Iowa and Wisconsin.

Chris is a Communications Partner specializing in Alliant Energy’s renewable investments. Coming from a journalism background, he’s excited to tell the story of Alliant Energy’s Clean Energy Blueprint and other renewable trends in new and exciting ways.

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