August 16th marked the signing of the Inflation Reduction Act (IRA) into law. The landmark IRA was the first major piece of legislation passed by Congress to address climate change, and just one year after its passage it is already improving Virginia residents’ lives by:

• Creating new good-paying jobs and job training in clean energy industries
• Providing incentives that reduce the cost of clean energy technologies
• Ensuring that clean energy technologies will be developed and manufactured in the United States

The IRA is making history by tackling the climate crisis head-on and strengthening America’s energy security. Virginia communities and households will benefit from this federal legislation through lowered energy costs; the creation of manufacturing jobs; and a cleaner, more secure, and healthier future for generations to come.

Virginians are already benefiting from the IRA in a number of ways:

• An estimated 240,000 households will be able to go solar through tax credits
• The average Virginia household will save 17.9% on utility bills – $426 annually –  through grants to update local and state building energy codes
• An additional $11.6 billion of investment in large-scale clean power generation and storage in Virginia between now and 2030
• 41,500 Virginia farms will benefit from investments in climate-smart agriculture practices
• Tens of thousands of people in affordable housing will be eligible for resiliency upgrades, like flood-proofing and storm resistance, in Virginia
• The IRA will prevent thousands of asthma attacks in Virginia by reducing pollution and improving local air quality
• Millions of Virginians will be eligible for a $7,500 rebate for new electric vehicles or a $4,000 rebate for used electric vehicles, helping middle-class Americans skip the pump and save on volatile fuel costs
• Small businesses – representing 99.5% of Virginia’s businesses – can lower energy bills with a $5 per square foot tax credit for energy efficiency improvements and a tax credit covering 30% of solar energy or clean trucks and vans for commercial fleets

There is an unprecedented amount of funding available at the federal level that the state should leverage to meet our conservation and environmental goals. Funds will be distributed in different ways and through multiple different channels. Some funding has already started to flow and some grant programs haven’t opened up yet. We highlighted some of the biggest opportunities for the Commonwealth to utilize in Our Common Agenda – check it out!