The anti-inflation bill passed by the Senate on Sunday could lower electricity bills for consumers and lower prices for things like rooftop solar panels, energy-efficient appliances and electric vehicles, Democrats and some energy experts said.
Under the legislation, the energy efficiency home improvement credit would allow households to deduct up to 30 percent of the cost of improvements like heat pumps and insulation on their taxes. Another provision expands a program that allows households that install solar or battery storage systems to deduct 30 percent of the cost of those projects from their taxes.
Rewiring America, a nonprofit that promotes energy efficiency, said it estimated that these and other measures in the legislation could save households $1,800 a year.
The package also continues to incentivize families to replace their gas-powered vehicles with electric ones. It provides a current tax credit of $7,500 for new electric vehicles and $4,000 for used ones. Couples earning less than $300,000 a year or individuals earning less than $150,000 a year will qualify for the credits, and consumers will receive the discount at the dealership.
“This bill will help create jobs and reduce costs for many American families,” in addition to slowing climate change, said Senator Thomas R. Carper, Democrat of Delaware.
Republicans said they expected the measure to increase inflation and said the credits would not help Americans.
“They’re not going to buy an electric car in the near future,” Sen. Marco Rubio, R-Florida, told his constituents. “They would like gas prices to go down because we’re producing more oil.”
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