Here's how the Inflation Reduction Act could save consumers money and protect the planet

A new climate bill, if signed into law, could reduce domestic greenhouse gas emissions by approximately 40% below 2005 levels by 2030, according to multiple estimates.

The Inflation Reduction Act of 2022, passed by the Senate on Sunday, would invest $369 billion to fight against climate change. The bill lowers the costs of sustainable energy technologies and energy-saving devices.

Consumers could purchase electric vehicles, clean energy and electric appliances less expensively due to rebates and tax breaks.

How does the climate bill make electric vehicles more accessible?

The bill would extend the current $7,500 EV tax credit and offer a new $4,000 credit for used EVs, as part of the package to address climate issues.

"It will help transition our economy from a fossil fuel one to a clean electric one," said Ari Matusiak, CEO of nonprofit Rewiring America. "That’s really good news for American families and their pocketbooks. And it is really good news for the planet."

But automakers have expressed concerns, saying that 70% of EV models currently sold in the U.S. don’t qualify for the tax credits.

This results from the bill requiring that an EV's battery contain material extracted or processed in America or via a U.S. free trade partner, among other conditions. Auto lobbyists are now demanding changes to the bill.

Matusiak said that while electric vehicles are on average more expensive to purchase compared with gasoline-powered cars, most are less expensive to maintain and operate throughout the life of the car. More tax credits could also help the automobile industry transition from manufacturing gasoline-powered vehicles to electric cars.

"The tax credits now apply to used cars," Matusiak said. "And the more new EVs that are purchased in the market, the larger the used EV car market will be over time, as those cars are recycled or cycled out for new ones. It creates another way to drive affordability for everyday Americans."

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How does the climate bill impact clean energy, like wind and solar?

Wind and solar capacity in the U.S. could almost triple by 2030, according to an analysis from Natural Resources Defense Council, and tax credits included in the bill could significantly reduce the price of renewable energy.

The bill offers $60 billion to encourage clean energy production, including tax credits to expand U.S. solar panels and wind turbines manufacturing, and extends a program that would offer a 30% tax credit to households installing solar or battery storage systems.

"This helps buy down the cost of renewables, whether it’s businesses, households or utilities that are hoping to install and deploy new, clean electricity like wind and solar," said Amanda Levin, interim director of policy analysis at NRDC. "We see this helping to usher in the fastest and most sustained build-out of renewables this country has seen."

She added wind and solar energy generation is already relatively inexpensive compared with fossil-fuel energy generation, and that tax credits could encourage more users to choose clean energy.

How does the climate bill encourage home efficiency improvements?

The bill offers up to $14,000 to households and entities that install electric heating systems, stoves, ovens and other electric appliances judged on their energy efficiency.

Matusiak said fossil-fuel-based machines are often less efficient than electric appliances, such as heat pumps, which could replace both furnaces and air conditioners. It may also be less expensive for households to maintain electric appliances.

"We need to move from a fossil fuels market to an efficient, electric, clean energy market," Matusiak said. "The way to do that is to catalyze demand for machines that are going to make people’s lives better, make people’s lives more affordable, and make the planet better all at the same time. And that’s exactly what the Inflation Reduction Act is doing."

This article originally appeared on USA TODAY: The Inflation Reduction Act could save money and fight climate change