Secretary of the Treasury Janet L. Yellen delivered a speech in Raleigh, North Carolina, highlighting the significant progress made under the Inflation Reduction Act (IRA) and its impact on clean energy and economic growth. Speaking alongside Governor Cooper, Congresswoman Ross, and Congressman Nickel at Wake Tech Community College, Yellen praised North Carolina's leadership in clean energy education and technology.
Yellen noted that when she assumed office, the U.S. had no approved offshore wind projects, and the clean energy sector was nascent. However, thanks to the Biden-Harris Administration's investments and the IRA, the federal government has now approved ten offshore wind projects, capable of powering over five million homes. This progress represents half of the capacity needed to achieve the 30-gigawatt offshore wind goal by 2030. These projects are expected to create thousands of union jobs and contribute to a cleaner, more resilient energy grid.
Turning to domestic economic matters, Yellen discussed the current state of the U.S. economy, which has seen strong recovery with a 3% GDP growth rate for Q2, low unemployment, and a significant decline in inflation. Despite these gains, she acknowledged that household costs for essentials like health care, housing, and energy remain high. The Administration's focus is on reducing these costs, partly through the IRA's provisions.
Yellen highlighted the IRA's impact on lowering energy costs for American families. The Act’s residential clean energy and home efficiency tax credits have allowed 3.4 million families to claim $8.4 billion in credits so far this year. These credits support investments in solar panels, battery storage, and energy-efficient home improvements. In North Carolina alone, around 90,000 families have claimed over $160 million in credits.
The IRA also provides $7,500 off the purchase of qualifying electric vehicles, saving consumers $1.5 billion this year. Yellen emphasized that the Administration is working to make these credits accessible and that transforming the IRS into a modern tax agency is part of this effort.
Beyond immediate savings, the IRA is fueling long-term investments in manufacturing and clean energy. Yellen referenced recent expansions, such as the new lithium hydroxide production facility in Bessemer, North Carolina, driven by IRA incentives. These investments are creating jobs in underserved areas and helping reverse a decline in U.S. manufacturing.
In conclusion, Yellen defended the IRA’s credits against potential rollbacks, warning that eliminating them could raise costs for families, undermine domestic manufacturing investments, and benefit foreign competitors. She emphasized the need to continue defending these credits and ensuring that as many Americans as possible benefit from them. Yellen expressed optimism about the ongoing positive impact of the IRA on American families and the economy.
Comments