The Inflation Reduction Act in will have a significant impact on South Carolina homeowners, including:
Lowering the Energy Costs
Homeowners in South Carolina can benefit from the IRA through a home energy rebate program and tax credits on home energy upgrades. The legislation sets apart $9 billion for rebates that will make it easier for homeowners in low- and middle-income households to afford energy-efficient appliances such as heat pumps. In addition, low-income households can recoup 100% of an electrification project up to $14,000.
The IRA provides specific incentives across the entire energy chain from the grid to the plug, with substantial savings opportunities for improvements made within homes. In addition, it aims at boosting the already-rising popularity of sustainable homes as consumers invest in smart-home technology to monitor their energy use and reduce their utility bills.
The act will lower costs for homeowners by introducing rebates that cover 50 – 100% of the cost of installing new electric appliances. The rebates will be available for new, efficient electric equipment and in some cases, will be enough to pay for the entire cost of the new equipment. The rebates, which state energy offices will administer with a limited amount of funding, will be available primarily to low- and moderate-income households.
Creating Good Paying Jobs
The Inflation Reduction Act will positively impact job creation in South Carolina, particularly in the clean energy sector. In 2021, South Carolina already had a considerable workforce of 44,011 workers employed in the clean energy section. The Act is expected to enhance this trend by bringing in an estimated $15 billion of investment in large-scale clean power generation and storage to the state between now and 2030.
The South Carolina energy rebates will stimulate the growth of solar, wind, storage, and other clean energy industries, creating job opportunities across the state. The tax credits also include bonuses for businesses that pay a prevailing wage, ensuring that South Carolina workers earn a good paycheck as they build a clean energy future in America.
Creating jobs in the clean energy sector is essential to promoting economic growth and reducing the state’s carbon footprint. In addition, the influx of investment will stimulate the local economy and support the development of new businesses while attracting talent and promoting innovation.
Promoting Domestic Manufacturing
South Carolina is already home to 249,400 manufacturing workers, and the Act is expected to further boost this industry by promoting the production of clean energy and transportation technologies within the country. The act will achieve this by:
- The investment in the new Advanced Industrial Facilities Deployment Program aims to position America as the leader in the expanding global market for clean steel, aluminum, cement, and other related products. In addition, by investing the developing these technologies, the Act will create opportunities for domestic manufacturing, which will positively impact local economies and strengthen supply chains.
- The Act’s focus on clean energy and transportation technologies will create demand for locally produced components and equipment. This increased demand for domestic production will support South Carolina’s manufacturing sector and encourage companies to produce their products in-state.
Boosting Small Businesses
The Inflation Reduction Act will benefit small businesses in South Carolina by providing tax credits for energy efficiency improvements in commercial buildings. Commercial building owners can receive a tax credit for up to $5 per square foot for making improvements that deliver lower utility bills. This will help small businesses save money on their energy bills and reduce their overall operating costs.
In addition, small businesses can receive tax credits covering 30% of the costs of installing solar power, making it more affordable for them to switch to clean energy. If these businesses operate commercial fleets, they can receive tax credits for purchasing clean trucks and vans, reducing their carbon footprint and operating costs.