Fast growth in clean energy and EVs boosts estimates by $428 billion while cutting emissions.
The Congressional Budget Office this week bumped up its projection of the law’s climate tax credits through fiscal year 2033 by $428 billion, putting an official stamp on what public and private analysts had been saying for the past year. The law, known as the Inflation Reduction Act, is expected to spur up to $3 trillion in total public and private investment over the next decade.
The CBO’s increase is driven by a flood of clean-energy factory announcements, proposed environmental regulations that would push more buyers to electric vehicles and rules allowing leased electric cars to qualify for generous tax breaks with fewer restrictions. The list of corporate investment pledges got bigger on Tuesday, when Toyota said it is spending $1.3 billion to expand EV production at a factory in Kentucky.
When enacted, the IRA was expected to include $271 billion in tax breaks over a decade, though that can’t be compared directly to the $428 billion increase. The CBO said this week that the IRA’s budgetary effects are still highly uncertain.
The tax credits’ popularity and increasing cost could fuel concerns about rising government budget deficits and make the energy incentives a big target for some Republicans if they take full control of Congress and the White House next year.
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EV haters are clueless. Go look at how much subsides oil companies were give, bunch of right wing lunatics
@ParrotAllisonRepublican2yrs2Y
2024 is not going to be your year.
@S0cialistRayLibertarian2yrs2Y
Anything the government interferes with in the market, e.g., via mandates, price supports, credits allowed, flowing with "free" money - all have the effect of increasing net costs to consumers and distorting the demand curve relative to supply.
Maintaining the government-imposed costs, and increasing those costs on fossil fuels while disabling their free flow into the demand market will only increase those costs as well.
@JudicialMaxGreen2yrs2Y
A far better strategy, in my opinion, would be to invest in more power generation and more efficient grids, which would hopefullly lower the cost of electricity, to the point where electric heat and EV are a no brainer. But that's not sexy like EV cars, so here we are, with skyrocketing electric bills and no end in sight to the increases. Meanwhile the Chinese and the Indians, who out number us 7:1 collectively, are building all sorts of new plants to do what I laid out...
When you throw money at a project you get many takers. Look at the results on the east coast with the companies significantly reducing or cancelling wind on the water projects. Look at the major car companies, other than Toyota, who are reeling from the effects of putting all of their apples in the EV basket. Look at the effects of trying to build a huge charging network without the benefit of an adequate grid. Too many solutions to problems we don’t have in Washington.
Clean out the executive and legislative branches this November. Both parties!
@WorriedCowRepublican2yrs2Y
$428 billion that could be used to rebuilding our military to confront the New Axis of Evil and avoiding WWIII.But Biden and the Dems would rather light it on fire.
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