Pirate's Cove

Before they start yammering about wanting more, they should prove that they purchased EVs themselves, slapped solar panels on their homes, got them weatherized, and purchased all new appliances

Scientists welcome ‘enormous’ US climate bill — but call for stronger action

Several US agencies, including the National Oceanic and Atmospheric Administration (NOAA) and the Department of Energy (DOE), will see a significant influx of cash from a massive climate and tax bill that US President Joe Biden signed on 16 August. Scientists around the world welcome the legislation, called the Inflation Reduction Act, which pledges US$369 billion in climate investments over the next decade — while acknowledging that more work is needed to counter global warming. (big snip)

Despite their excitement over the legislation, scientists say the United States must do more. Even if all nations hit their climate targets, the global temperature will rise above the 1.5 °C mark, says Roxy Matthew Koll, a climate scientist at the Indian Institute of Tropical Meteorology in Pune.

Just like the temperature has done several times during the Holocene, despite CO2 being below the “safe” zone of 350ppm

Mohamed Adow, a climate-policy expert at Power Shift Africa, a think tank based in Nairobi, says the United States needs to take responsibility for its historical emissions and help to deliver the climate finance promised to poorer nations in the Paris accord. Rich nations pledged to give $100 billion a year until 2025 to poorer ones, but the money has not materialized. “That’s what we need to see for a real jump in progress on the global stage,” he says.

Looks more like a shakedown, demanding money from other nations with no strings attached

Whether the legislation will build goodwill among lower-income nations ahead of the next international climate summit, to be held in Egypt in November, is unclear, Sengupta says. “Some countries may view this bill as long overdue and as the bare minimum on the part of the US.”

And, it will get annihilated if a Republican wins the White House in 2024 and keeps the House and Senate. Speaking of the IRA

How the Huge New US Climate Bill Will Save You Money

TODAY PRESIDENT JOE Biden signed the Inflation Reduction Act, a massive bill that represents the biggest investment in climate action in US history. It puts nearly $400 billion toward promoting domestic production of clean energy technology and generally retrofitting America to survive climate change. If all goes to plan, the act would slash US emissions by 40 percent by the year 2030.

In the immortal words of Uncle Sam, the bill screams: “I Want You” … to fight a war against climate change. The bill is packed with tax credits and rebates for Americans to buy electric vehicles (EVs), install heat pumps and better insulation, and slap solar panels on their roofs. We’re talking thousands upon thousands of dollars per household. In turn, all that extra investment in green technologies should juice the market, further accelerating the transition to a cleaner economy.

Spend a lot of money to save a little money, but, won’t do anything about inflation

First off, a tax credit isn’t the same as a tax deduction—it’s even better. With the latter you could reduce your taxable income, say, from $65,000 to $60,000. That means the government doesn’t take its cut of that $5,000. A tax credit, by contrast, would be you getting that full $5,000 back. So if you owe the government $10,000 after filing taxes, and you’ve got a credit for $5,000, you only end up paying $5,000.

How many middle class and working class folks owe the IRS that much money? Where it gets interesting is “If you owe the IRS $1000, or, were already getting a refund of $600, will the IRS give you that $5000? Will you get back $4000/$5700?” Most likely, you’d have the $1,000 wiped out, and get nothing else.

The Inflation Reduction Act provides tax credits for energy-efficient home improvements: new windows, doors, insulation, water heaters. So when you file your taxes, you get discounts on what you owe the feds. “Let’s say you spend $1,000 on insulation—you would be able to get a tax credit of 30 percent of that,” says Evans. “So a $300 tax credit, which goes directly against what you owe in taxes. So at the end of the year, you owe $5,000 in taxes, you knock that $300 off, and you only owe $4,700.”

Most people do not owed taxes like that. This is all for the wealthy.

A notable exception to the Inflation Reduction Act’s $1,200 annual limit on tax credits is with heat pumps, which you can get $2,000 for. These appliances are supremely powerful tools in fighting climate change: Instead of burning gas like a traditional furnace, they use electricity to extract heat from outdoor air and pump it inside, or extract heat from indoor air and pump it outside. “It’s a really efficient way of moving heat from one place to another,” says Lowell Ungar, director of federal policy at the American Council for an Energy-Efficient Economy. “It’s a reversible air conditioner, basically, for when you need to cool the home.”

You spend at least $8000 for the whole installation of a heat pump. You owe $500 in taxes. You now do not owe that $500 and shelled out $7500. Hooray?