Concerns over the future of the Inflation Reduction Act
AUSTIN (KXAN) — The push for renewable energy has been prevalent in recent years, with global EVs sales growing about 25% in the first quarter of 2024, according to the International Energy Agency.
The Inflation Reduction Act (IRA), passed in 2022, has propelled such growth by allocating billions of dollars towards investments in renewable energy sources. However, the future of such policies remains uncertain.
During his campaign trail, President-elect Donald Trump criticized the IRA in a speech, calling it a "scam" and claimed it waste of taxpayer dollars. Trump also said he plans to "rescind all unspent funds under the misnamed inflation act."
West Virgina Sen. Shelley Moore Capito said she supports such efforts to repeal the IRA.
"[It would] claw back some of the regulatory areas that we've seen the Biden administration overreach," Capito said. "A lot of what they have in there is spending on green bank and environmental justice."
The IRA includes various tax credits and deductions, ranging from purchasing electric vehicles to implementing energy-efficient technologies in homes. For example, if you purchase a new electric vehicle between 2023 and 2032, you could qualify for a tax credit of up to $7,500.
Liz John, the chief operating officer for SPEER, an Austin-based organization that advocates for energy efficiency, said the infrastructure for electric vehicles in Texas has been growing.
"There has been more of an interest and an increase in folks looking into the IRA and taking advantage of these credits, largely because of energy independence," John said.
John also emphasized that focusing on clean energy solutions positively impacts the economy.
"It is putting money back into local economies," John said. "It is investing in workforce and job creation, which the [Trump] administration has indicated that they want."
The growth in renewable energy has also propelled lithium battery company, EnergyX, to open its headquarters in Austin back in November.
"This recent facility opening was a brand new 40,000 square foot facility," said EnergyX CEO Teague Egan.
Egan credits the IRA for encouraging manufactures like him to invest in renewable energy.
"It's been a huge piece of legislation that has really pushed the whole energy transition forward," Egan said. "[It's] motivated private industries to indirectly further [and] fund the energy transition."
With the days ticking till Trump enters his second term, Tennessee Republican Sen. Bill Hagerty said Trump isn't against renewable energy technologies.
"[Trump's] just against an overreaching bureaucracy that tries to dictate the behavior and control Americans," Hagerty said.
Trump has not yet specifically outlined how he plans to deal with the IRA. Republicans have Congress, making it easier to push major changes to those polices when he enters office.