The Inflation Reduction Act

A Historic Commitment to Fight Climate Change and Strengthen Health Care

The Inflation Reduction Act, a historic climate and health care bill, contains many incentives to help people and communities make the change to clean energy, reducing greenhouse gas emissions, improving access to health care and restoring overburdened communities to good health.

The Act contains incentives for home efficiency, heat pumps, electric vehicles, home solar and battery storage, and more. The law will directly reduce inflation, lowering costs for American families on everything from energy to healthcare.

Inflation Reduction Act Provision
To Help Marylanders

Saves Families Money on Home Energy Costs

  • Families will save money to power their homes and cars with emission-free energy like solar and wind, cutting energy costs by more than $1,000 for the average family through cheaper energy, tax credits, and energy efficiency.

  • Provides $14,000 in direct consumer rebates for families to buy heat pumps or other energy efficient home appliances, saving families at least $350 per year.

  • 7.5 million more families will be able install solar on their roofs with a 30% tax credit, saving families $9,000 over the life of the system or at least $300 per year.

  • Provides $9 billion in consumer home energy rebate programs, focusing on low-income consumers, to electrify home appliances and for energy-efficient retrofits.

  • $369 billion will be invested in clean energy, while holding oil and gas companies accountable for polluting communities.

Begins the Path to Justice In Disadvantaged Communities

The IRA:

  • Invests a historic $60 billion in Environmental Justice priorities, to  directly help disadvantaged communities that have been on the front lines of environmental health hazards for decades.

  • Includes $3 billion for reconnecting communities divided by highways and other infrastructure–such as Baltimore’s Highway to Nowhere– through the Neighborhood Access and Equity Grants program. The funding could be used to add trails, bike lanes, and provide better connections to public transit. 

  • Includes  funding for programs to reduce pollution and climate risks in low-income communities and communities of color and establishes a loan program to support energy development projects on Tribal lands, and funds loans for renewable energy projects in rural communities.

Creates Well-Paying, Clean Energy Jobs

  • These investments will create 9 million jobs in the next 10 years.

  • In Maryland, the IRA will:

    • Bring an estimated $6.5 billion of investment in large-scale clean power generation and storage between now and 2030

    • Create tax credits that will create jobs across solar, wind, storage, and other clean energy industries. These credits include bonuses for businesses that pay a prevailing wage, so that Maryland workers earn a good paycheck as we build the clean energy future in America.

Invest in Cleaner Air

The IRA will:

  • Provide funding to reduce emissions from vehicles that contribute to harmful air pollution, such as money to electrify the U.S. Postal Service’s delivery fleet.

  • Make it easier and cheaper to buy an electric vehicle, with discounts up to $7,500 for new EVs and $4,000 for used EVs.

  • Help communities make the switch to clean heavy-duty vehicles such as school buses, transit buses, and garbage trucks.

  • Fund programs to reduce air pollution, improve air quality monitoring, and shore up enforcement. Together, these provisions are estimated to save nearly 4,000 lives annually by 2030 and prevent up to 100,000 asthma attacks a year by 2030.

  • The IRA will invest

    • $11.5 billion in industrial emissions reduction programs,

    • $406 million to address air pollution at large polluting facilities and schools, and

    • Fund zero-emissions technologies at U.S. ports, and it

    • Will establish the first ever methane fee to hold fossil fuel companies accountable for excess emissions.

Save Marylanders Money on Health Care

The IRA will:

  • Lower prescription drug costs for seniors, by improving prescription drug coverage and lowering drug prices in Medicare.

  • Will save billions of dollars for seniors and people with disabilities by allowing Medicare to negotiate [rices for high-cost drugs

  • Save Maryland Medicare beneficiaries money by capping insulin copays at $35 per month.

  • Provide extra help paying for drugs for Maryland Medicare beneficiaries with low incomes.

  • Help 153,000 Marylanders save hundreds of dollars on average on their Marketplace health care premiums thanks to the continuation of subsidies

  • Ensure an additional 38,000 Marylanders have health insurance in 2023.