Lewis, M. (2022, September 8). Here’s how the new US tax credits and rebates will work for clean energy home upgrades. Electrek. Retrieved January 21, 2023, from https://electrek.co/2022/08/19/us-tax-credits-rebates-climate-law/
In Joe Biden’s recently signed Inflation Reduction Act, part of the bill contained climate change incentives. New or improved tax rebates for a multitude of kinds of renewable energy were put in place in order to incentivize and help pay for energy sources to fight climate change. Solar power got an additional 700$ rebate, which is essentially a tax credit or repayment. Other sources like geothermal energy and heatpumps got similar rebates. New credits started going into effect this year.
This article relates to environmental science because it details tax rebates aimed at stemming climate changed and helping renewable energy sources. Climate change and global warming are some of the main concerns of environmentalists, and pose as a major threat to life on this planet. One way these issues worsen is by increased greenhouse emission, which includes depletion of nonrenewable resources. By funding solar power and more, climate activists hope to quicken the transition to renewables. I think it is awesome that the government is helping to incentivize environmentally friendly options, similar to other tax credits for electric cars. One difficult part about buying panels is the upfront cost and installation, but the generated energy lessens that cost overtime. Giving people the money to get solar panels helps them economically while simultaneously helping the climate, and I fully support greater rebates in the future, as well as other economic strategies that incentivize climate activism. One problem with the rebates coming at a federal level is its susceptibility to be altered by other politicians or presidents down the line. I think that many states should also consider adopting rebate legislation, and that climate change should shift to a more bipartisan issue as people set aside political differences for the good of humanity going forward.
Sam- Your point about this tax break going away as administrations change is spot on. How do we get past that? It’s a tough one because we want to encourage people to practice conservation and tax breaks do that. However, at a certain point the govt shouldn’t have to prop up the technology and if continues to need propping up, maybe it’s not economically feasible after all. It’s a tough issue to navigate. Especially considering the oil and gas industry get all kinds of tax breaks and govt help, which makes them artificially cheap in the market. I must admit I was pretty excited to see Biden’s climate package go through… and that I don’t know all the details. But at least it’s something and the biggest something that has happened related to climate change.
So my question for you… how long should these alt energies receive subsidies/tax breaks? Indefinitely… or is the length of one administration ok?
Great job reporting on this issue this year, Sam! Thanks for your contributions.
Considering the massive breaks these other, much more harmful industries are receiving, I think it is reasonable to continue encouraging renewables with subsidies until we have a very good idea of its future. I’d make the timeline 20 years or so.
I think that money going towards solar energy is a step in the right direction, however is it the best energy source we should be funding? Solar energy needs a lot of space and the right amount of sunlight, and funding is only one step. When will we see solar energy actually implemented?
As solar energy continues to develop, I think we will find more ways to advance the technology and make things more feasible.