President Biden signs historic climate bill creating positive change in clean energy across America

On August 16, 2022, President Joe Biden signed a climate bill that will make cleaner energy more affordable for Americans everywhere. The bill provides subsidies that reduce the cost of electric vehicles, solar panels, heat pumps and other energy-efficient home improvements.

Consumers will be able to claim these subsidies when they file taxes, or as a separate rebate if they don’t file. In some cases, they can even claim these subsidies when they make the initial purchase on an item or product. With the passing of this bill, people will be able to purchase some electric vehicles at a lower price than traditional cars that burn fossil fuels.

If a person wants to buy a new electric vehicle and get a subsidy for it, the car must qualify underneath the bill’s requirements, i.e., the car must be assembled in North America, and the person purchasing and filing it on their taxes can’t make more than $150,000 a year. However, for used cars, there is also a tax credit of up to $4,000. The process for affording home improvement costs is very similar, in that a typical $20,000 rooftop solar installation could be cut down by $6,000 in tax credits.

In addition to consumer benefits, there are benefits for business owners as well. Businesses will be able to claim credits to replace traditional cars with electric vehicles, saving as much as 30% on the cost of each vehicle purchased. Additionally, building credits will have a longer expiration date, and will be available to publicly owned nonprofits and utilities, like Nashville Electric Service (NES).

NES is pleased about this additional funding to support energy saving and renewable power options for Nashville and beyond. We already offer access to solar energy through our Music City Solar community solar park, our residential EV program is currently in development and many aging homes in low-income communities in our service area are receiving thousands of dollars in free home weatherization upgrades through our Home Uplift program. In addition, NES focuses on reducing the utility’s own energy usage and instituting more sustainable power resources for its customers.