IRA … the Inflation Reduction Act

HCED’s Paul Lovell and Amy Bouska spoke to the Howard County Historical Society about the Inflation Reduction Act (so much more than just a retirement investment!). The IRA made major changes to Medicare’s drug coverage, including insulin costs capped at $35/month and annual Part D (drug) out-of-pocket expenses capped at $2000/year starting in 2025, expansion of “extra help” for Part D, negotiation of (some) drug prices by the government, and other changes.

Importantly for the climate, the IRA reinstated the federal solar and geothermal (including battery systems) energy credit at 30%, along with other tax credits to promote energy efficiency and electrification. For residences that can’t use tax credits, a series of rebates for energy efficiency and electrification costs are under development by the states.

For non-taxpayers (non-profits, cities, counties, etc.), the IRA established a “direct pay” option for them to receive the 30% credit as a direct reimbursement. This significantly improves solar accessibility for these entities.

Iowans will be pleased to know that the IRA also included expanded funding for REAP, EQIP, CSP, the Higher Blends Infrastructure Incentive Program, and REC infrastructure improvement.