Energy experts say climate bill could help consumers cut utility bill costs


The Reducing Inflation Act that passed the Senate on Sunday could reduce consumers’ electricity bills and prices for things like rooftop solar panels, energy-efficient appliances and electric vehicles, officials said. Democrats and some energy experts.

Under the legislation, a credit for improving home energy efficiency would allow households to deduct from their taxes up to 30% of the cost of improvements such as heat pumps and insulation. Another provision extends a program that allows households that install solar or battery storage systems to deduct 30% of the cost of such projects from their taxes.

Rewiring America, a nonprofit group that promotes energy efficiency, said it estimates these and other measures in the legislation could save households $1,800 a year.

The package also continues to encourage families to replace their gas-powered vehicles with electric vehicles. It extends a current tax credit of $7,500 for new electric vehicles and $4,000 for a used vehicle. Couples earning less than $300,000 per year or individuals earning less than $150,000 per year would qualify for the credits, and consumers would get the rebate at the dealership.

“This bill will help create jobs and reduce costs for many American families,” in addition to slowing climate change, said Sen. Thomas R. Carper, Democrat of Delaware.

Republicans said they expected the measure to drive up inflation and said the credits would not help Americans.

“They’re not ready to buy an electric car anytime soon,” Sen. Marco Rubio, a Republican from Florida, said of his constituents. “They would like gas prices to go down because we produce more oil.”