Treasury Secretary Yellen to tout clean energy tax incentives Biden signed into law

Treasury Secretary Janet Yellen speaking at a news conference on July 14.

Made Nagi | Reuters

Treasury Secretary Janet Yellen will be touting tax credits and other private sector incentives contained in the Inflation Reduction Act on Tuesday in North Carolina, saying they will help lower energy costs for consumers and greenhouse gas emissions across the U.S.

The act, which President Joe Biden signed into law in August, represents the largest climate spending package in U.S. history, with $369 billion earmarked for domestic energy initiatives and to combat climate change. The investment, Yellen is expected to say at the Cypress Creek Renewables plant in Durham, puts the nation on a “strong course” toward substantially cutting greenhouse gas emissions by the end of the decade, according to excerpts of her speech released ahead of her trip.

Thousands of dollars in tax breaks and rebates for electric vehicles and home efficiency upgrades — such as energy-efficient skylights, water heaters and solar panel installation — are money-saving features in the act expected to translate to lower energy costs for families. But Yellen is expected to say the government will also rely on the private sector to help meet its climate goals by reducing emissions by at least half from 2005 levels by 2030.

“Specifically, government must provide the basic foundations and long-term certainty that businesses need to invest at scale and drive the transition toward a clean energy future,” the excerpts of her planned speech say.

The new law will spur “a significant mobilization of private investment into the clean energy sector,” according to Yellen’s remarks.

“Combined with the business tax credits, this investment is expected to further push down the costs of clean energy production. This, in turn, is expected to help bring down retail electricity rates at the same time as the law electrifies a greater share of the American economy,” her speech excerpts say.