The Inflation Reduction Act Delivers Affordable Clean Energy for Texas

The Inflation Reduction Act is the most significant legislation in U.S. history to tackle the climate  crisis and strengthen American energy security. It will lower energy costs for households and  businesses, create manufacturing jobs for American workers, and deliver a clean, secure, and  healthy future for our children and grandchildren. The savings, jobs, and other benefits provided by this legislation will reach communities across Texas.  

President Biden promised to combat the existential threat of climate change and build a clean  energy future that creates jobs, advances environmental justice, and lowers costs for families.  He’s following through on that promise with the Inflation Reduction Act and Bipartisan  Infrastructure Law. 

• LOWER ENERGY COSTS: The Inflation Reduction Act will make it more affordable for Texas families to purchase energy efficient appliances when they need to, make repairs  around their homes, and save money on their utility bills each month, through: 
o Rebates covering 50-100% of the cost of installing new electric appliances,  including super-efficient heat pumps, water heaters, clothes dryers, stoves, and  ovens. In Texas, millions of low- and moderate-income households are eligible for  rebates.  
o Rebates for households to make repairs and improvements in single-family and  multi-family homes to increase energy efficiency.  
o Tax credits covering 30% of the costs to install solar panels and battery storage  systems, make home improvements that reduce energy leakage, or upgrade  heating and cooling equipment. No income limits apply. For solar, uptake  
projections estimate that over 1 million additional Texas households will install  rooftop panels as a result.  
o Tax credits covering 30% of the costs of community solar projects—owned by local  businesses that sign up families to save on their electric bills—with additional bonus  credits of 20% for projects at affordable housing properties and 10% for projects in  low-income communities.  
o Grants to help state and local governments adopt the latest building energy codes,  which would save the average new homeowner in Texas 8.9% on their utility bills— $179 annually. 
• GOOD-PAYING JOBS: In 2021, there were already 238,884 Texas workers employed in  clean energy jobs. The Inflation Reduction Act will expand these opportunities, bringing an  estimated $66.5 billion of investment in large-scale clean power generation and storage to  Texas 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. These credits include  bonuses for businesses that pay a prevailing wage, so that Texas workers earn a good  paycheck as we build the clean energy future in America. 
• DOMESTIC MANUFACTURING: Manufacturers employ 873,500 workers in Texas, and  the Inflation Reduction Act will help us make the technologies of the future at home— supporting local economies and strengthening supply chains. The Inflation Reduction Act  will boost U.S. manufacturing of clean energy and transportation technologies, as well as  investments for a new Advanced Industrial Facilities Deployment Program to position
America to lead the growing global market for clean steel, aluminum, cement, and more.  
• SMALL BUSINESSES: Texas is home to 3 million small businesses, representing 99.8% of all businesses in the state, and the Inflation Reduction Act 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. 
• ELECTRIC VEHICLES: The Inflation Reduction Act will 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 EVs, helping middle-class Americans skip the gas pump and save on fuel costs.  In Texas, millions of people will be eligible for these discounts. Texas recently submitted a  state plan for using funds from President Biden’s Bipartisan Infrastructure Law to build out  EV charging stations along highways.  
• CLEANER AIR: The Inflation Reduction Act will significantly reduce pollution, resulting in  100,000 fewer asthma attacks in America in 2030, and position the U.S. to achieve  President 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 air pollution. In addition to reducing pollution  across the economy, the Act will benefit communities most in need of cleaner air, with in  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.  
• RURAL OPPORTUNITIES: The Inflation Reduction Act supports climate-smart agriculture  practices, which will help Texas’s 247,000 farms lead on climate solutions and reward  their stewardship. Electric cooperatives, which serve 2.5 million homes, businesses, and  other customers in Texas, will for the first time be eligible for direct-pay 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. 
• RESILIENT COMMUNITIES: The Inflation Reduction Act will upgrade affordable housing,  including projects that boost resilience in the face of intensifying extreme weather. In  Texas, hundreds 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. The Inflation Reduction Act also invests in strengthening America’s forests,  including programs focused on preventing wildfires and for tree planting projects that help  protect communities from extreme heat.