From the Sierra Club:

Real-World Benefits of the Inflation Reduction Act’s Historic Climate Investments

The Inflation Reduction Act of 2022 includes more than 100 programs that will invest about $369 billion in climate action, clean energy jobs, and environmental justice.1 Collectively, these unprecedented investments will put us on a path to cutting climate pollution by 40% by 2030 while creating over 9 million family-sustaining jobs over the next decade and advancing racial, economic, and environmental justice. The act also includes funding to track its labor, equity, and environmental standards and impacts to enable oversight and accountability.

Though the Inflation Reduction Act does not get us all the way to President Biden’s goal of reducing emissions by half
by the end of the decade, and its oil and gas leasing provisions place an unacceptable burden on frontline communities,
it marks the single biggest investment in climate action by Congress to date. The Sierra Club will continue to defend against the harmful effects of fossil fuel development and work to ensure environmental justice in every community.

What tangible benefits will families and communities see from these investments? To name just a few examples, the
Inflation Reduction Act will:
Clean Transportation
• Replace tens of thousands of diesel heavy-duty vehicles with zero-emission trucks and buses,
reducing harmful toxic emissions in communities and ensuring that schoolchildren, transit
riders, logistics truck drivers, and port and warehouse workers can breathe cleaner air2
• Lower the purchase cost of new qualifying battery electric vehicles and fuel cell vehicles by up
to $7,500
• Lower the cost for lower- and middle-income households to buy used electric vehicles by up to
$4,0003, which is crucial because consumers are three times more likely to buy used cars than
new cars
• Help individuals and businesses install more than 200,000 electric vehicle charging stations4 in
communities nationwide5
• Convert 35% of U.S. Postal Service mail trucks to clean electric vehicles to reduce air and
climate pollution6
• Help reconnect neighborhoods — primarily in Black and Latinx communities — that have been
divided for decades by highways that reinforce systemic racism and expose residents to harmful pollution7
Clean Electricity
• Help the average family save hundreds of dollars annually on utility bills through clean energy,
energy efficiency, and electrification incentives8
• Expand wind, solar, and battery deployment, bringing lower cost renewable energy to millions of
additional homes each year9
• Allow nonprofit rural electric and municipally owned utilities, serving nearly one-third of homes,
to move away from fossil fuel power like coal and build solar, wind, and storage, lowering electric
bills and reducing air and water pollution10,11
• Make it $7,000 cheaper on average to install solar panels on your rooftop12
• Boost access to renewable energy in low-income and Indigenous communities by covering
40%-50% of the cost of solar, wind, and battery projects13
• Make the electric grid more reliable so that communities don’t experience disastrous grid
failures like the one that killed over 100 people in Texas in 2021 when a cold snap knocked out
power for over 4 million homes14
• Support clean energy,15 clean transportation,16 decarbonized buildings,17 and deployment of grid
upgrades,18 especially in frontline communities
Community Health & Resilience
• Support community-led efforts to monitor and clean up toxic pollution, adapt to climate change,
and achieve healthier living standards in neighborhoods that have endured environmental
• Boost water supplies for communities, including Tribal communities, experiencing increasing
• Provide support for coal miners and their families affected by black lung disease through full
and permanent funding for the Black Lung Disability Trust Fund21
• Ensure workers at qualified solar and wind facilities are paid prevailing wages22
• Ensure Superfund cleanups have a guaranteed stream of funding by reinstating the Hazardous
Substance Superfund financing rate tax rate on oil production23
• Improve methane monitoring, fund environmental restoration, and help communities reduce the
health effects of pollution and increase their climate resilience through a Methane Emissions
Reduction Program24
Lands & Wildlife Protection
• Protect forests for people to enjoy, for ecosystems to thrive, and for a more livable climate25
• Block the funding of temporary or new roads in wilderness areas
• Cultivate urban green spaces to protect children and communities from extreme temperatures26
• Protect wetlands that shield coastal communities from hurricanes and storms27
• Create recovery plans to protect threatened and endangered species, battle invasive species,
and restore habitat24
• Make critical reforms to the oil and gas industry that advance taxpayer fairness and hold the
industry accountable28
Healthy Buildings
• Enable working- and middle-class families to save up to $8,000 while weatherizing their homes
to reduce utility bills and pollution29
• Make it as much as $14,000 cheaper to convert your home from fossil fuel-based appliances to
electricity-based appliances — including heating and cooling — to slash air and climate pollution
while reducing home energy costs30
• Upgrade living conditions for more than 12,000 people who live in affordable housing,31 while
creating nearly 10,000 jobs32
• Develop zero-emissions energy systems in homes on Tribal lands through the Tribal
Electrification Program33
Clean Manufacturing
• Create more than 900,000 jobs over the next 10 years by helping to establish and retool
factories to manufacture electric vehicles, wind turbines, solar panels, and other clean energy
• Reduce toxic air and climate pollution from factories that produce steel, cement, and other
highly polluting industrial products35
Sustainable Agriculture
• Enable nearly 37,000 farmers to switch to renewable energy and machinery that uses less
• Support the efforts of more than 200,000 farmers to protect healthy soil so as to increase
harvests, reduce the impacts of droughts, and trap more climate pollution;37 and support
380,000 jobs3

1 Generally, tax credits have no limit on the investment tool
they could potentially reach. Actual government expenditure
could eclipse initial cost and investment estimates.
2 Sections 60101 and 60102 of the Inflation Reduction Act.
3 Sections 13401 and 13402 of the Inflation Reduction Act.
4 According to the DOE, the average cost for a public, Level
2 charger is about $7,556. Given the JTC score of $1.738
billion for the charging tax credit, it would enable over
200,000 chargers.
5 Section 13404 of the Inflation Reduction Act.
6 Section 70002 of the Inflation Reduction Act includes $3
billion to electrify the U.S. Postal Service (USPS) vehicles
(Section 70002). Based on an estimate from USPS that a
$6 billion investment would be sufficient to electrify 70%
of its mail delivery vehicles, $3 billion should allow USPS to
electrify half that or 35% of its fleet.
7 Section 60501 in the Inflation Reduction Act.
8 For example, Resources for the Future estimates that the
Inflation Reduction Act will reduce retail electricity costs by
5.2% to 6.7%, which means the average household could
save between $170 and $220 per year on their electricity
bills. Some provisions that support these savings include,
Sections 30002, 13302, 13304, 13101, 13103 of the Inflation
Reduction Act. Households may also experience savings
through electrification (e.g., converting gas appliances to
electric), which could reduce or eliminate gas utility bills.
Sections 50121 and 50122 of the Inflation Reduction Act.
9 Sections 13103,13701, 13702, 50153 of the Inflation
Reduction Act.
10 Section 13801 of the Inflation Reduction Act, providing
“elective payments” (i.e. direct pay) of clean energy tax
11 Section 22004 of the Inflation Reduction Act
12 Section 13302 of the Inflation Reduction Act offers a 30%
refundable tax credit to homeowners for the installation of
rooftop solar and other clean electricity equipment (Section
13101). The median cost of a residential solar photovoltaic
system is currently nearly $25,000. This tax credit would
reduce that cost by more than $7,400.
13 Sections 13103, 13702 of the Inflation Reduction Act (10%
bonus credit (40% total) for solar, wind, and battery projects
serving low-income communities and 20% bonus credit
(50% total) for such projects serving affordable housing.)
14 Sections 50151, 50152, and 50153 of the Inflation Reduction
Act. See here and here for more information on the Texas
power failure.
15 Section 13103 of the Inflation Reduction Act.
16 Section 60102 of the Inflation Reduction Act.
17 Section 30002 of the Inflation Reduction Act.
18 Sections 50152 and 50153 of the Inflation Reduction Act.
19 Sections 60104, 60105, 60106, 60114, and 60201 of the
Inflation Reduction Act.
20 Sections 50231, 50232, and 80004 of the Inflation
Reduction Act.
21 Section 13901 of the Inflation Reduction Act.
22 Sections 13101 and 13102 of the Inflation Reduction Act.
23 Section 13601 of the Inflation Reduction Act.
24 Section 60113 of the Inflation Reduction Act.
25 Sections 23001, 23003 and 50221 (among others) of the
Inflation Reduction Act
26 Section 20003 of the Inflation Reduction Act
27 Section 40001 of the Inflation Reduction Act 24 Sections
60301 and 60302 of the Inflation Reduction Act
28 Sections 50261, 50252, and 50263 of the Inflation
Reduction Act
29 Sections 50121 of the Inflation Reduction Act
30Section 50122 of the Inflation Reduction Act
31 The Inflation Reduction Act includes $1 billion for affordable
housing improvements (Section 30002), including upgrades
to boost energy and water efficiency and climate resilience. A
report by the McHarg Center and Data for Progress estimates
that upgrading the nation’s entire public housing stock would
cost between $119 billion and $172 billion. Using the midrange estimate of $146 billion, the Inflation Reduction Act
will upgrade about 0.7% of the nation’s public housing units.
With 1.8 million people living in public housing nationwide,
that investment suggests benefits for about 12,000 public
housing residents.
32 The BlueGreen Alliance estimates that the Inflation
Reduction Act will create over 10,000 jobs in retrofitting and
efficiency upgrades.
33 Section 80003 of the Inflation Reduction Act
34 The Inflation Reduction Act includes more than $42 billion
in tax credits, grants, and loans for firms to manufacture
electric vehicles, solar and wind components, battery
storage, and other clean energy goods (Sections 13501,
13502, 50142, 50143, 30001) It also includes nearly
$5.5 billion to support government procurement of
clean materials (Sections 60112, 60116, 60503, 60504,
60506, 70006), $5.8 billion in incentives for industrial
transformation to reduce pollution (Section 50161), and
$13 billion in incentives for clean hydrogen (Section 13204).
Based on recent economic modeling from the University of
Massachusetts Amherst, the BlueGreen Alliance estimates
that IRA’s investments in clean manufacturing will create
900,000 jobs over the next ten years.
35 Section 50161 (among others) of the Inflation Reduction Act
36 The Inflation Reduction Act includes $1.177 billion for the
Rural Energy for America Program (REAP), which offers
grants and loans to farmers and rural small businesses for
renewable energy and energy efficiency projects (Section
22002). In fiscal year 2020, 1,586 farmers and rural small
businesses received over $51 million in grants under REAP,
yielding an average grant size of over $32,000. Using the
same average, the Inflation Reduction Act’s more than $1
billion for REAP would yield nearly 37,000 grants and loans.
37 The Inflation Reduction Act includes $21.15 billion for
agricultural conservation investments (Section 21001
and 21002), including programs that prioritize funding for
disadvantaged farmers . In October 2021, the White House
estimated that similar levels of investment in the Build Back
Better Act ($22.3 billion; Section 15002)) “could reach
roughly 130 million cropland acres per year, representing as
many as 240,000 farms.”
38 Based on modeling by the University of Massachusetts
Amherst, the BlueGreen Alliance estimates that inv