Page 110 - Inflation-Reduction-Act-Guidebook

Making Homes and Buildings Cleaner

and More Efficient to Save Consumers

Money and Cut Pollution

President Biden’s economic plan focuses on lowering energy costs for American families so they
can keep their homes warm in the winter and cool in the summer. Monthly energy bills can be a
particular burden for families trying to make ends meet. The Inflation Reduction Act will help
households afford energy efficient appliances and upgrades when they need to make home
repairs, so they can save money on their energy bills for years to come. Modernizing and
upgrading the nation’s residential and commercial buildings to be affordable, resilient, energy
efficient, and electrified will create new domestic manufacturing opportunities for electric
heating and cooling technology, create good-paying jobs in the building trades, and drive down
greenhouse gas emissions from the building sector.

Lowering Energy Costs for Households

The Inflation Reduction Act empowers and equips homeowners who want to make upgrades so
they can save energy and reduce their energy costs. Families can save money on their monthly
energy bills by choosing energy efficient appliances that use less electricity. They can fix
inefficiencies, like drafty windows and poor insulation, that lead to energy waste. New tax
credits and deductions in the Inflation Reduction Act can reduce the cost of energy-efficient
home upgrades, including heat pumps and other appliances, windows, doors, and more; offset
the cost of adding residential clean energy sources, including solar panels and battery storage;
and make constructing energy-efficient single and multi-family homes cheaper and easier. The
law also includes nearly $9 billion for consumer home energy rebate programs to electrify home
appliances and perform energy efficient retrofits, with a focus on low-income consumers.

The programs in the Inflation Reduction Act build on investments in the Bipartisan Infrastructure
Law, including the Bipartisan Infrastructure Law’s $3.5 billion expansion of the Weatherization
Assistance Program to improve home energy efficiency for low-income families; $250 million
for the Energy Efficiency Revolving Loan Fund Capitalization Grant Program, through which
states can provide loans and grants for energy efficiency audits, upgrades, and retrofits to
buildings; and $550 million for the Energy Efficiency and Conservation Block Grant Program,
which is designed to assist states, local governments, and Tribes in implementing strategies to
reduce energy use and improve energy efficiency.

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