Inflation Reduction Act aims to ease inflation through climate change initiatives
HOLYOKE, Mass. (WGGB/WSHM) - Western Mass News is taking a closer look at the Inflation Reduction Act which just passed in the U-S Senate, and now heads to the House for discussion.
This legislation mostly focuses on climate change, so how will it reduce inflation, and what can people in western Massachusetts expect?
We spoke to a political science professor who said the effects of this legislation will not be felt right away by the everyday consumer. However, this bill will create big changes in the country that are aimed to reduce inflation costs.
Gary Rome, the owner of Gary Rome Hyundai, told Western Mass News that he cannot seem to keep electric cars in his parking lot.
“25 percent of consumers are now thinking that their next vehicle will be an electric vehicle,” Rome said.
Those customers probably have the right idea. Just this weekend, the U.S. Senate passed the Inflation Reduction Act which covers a wide range of relief, but mainly focuses on renewable energy.
“It will begin to change the calculation for how we pay for energy,” said Maria Toyoda, Professor of Political Science at Western New England University. “There’s a lot of emphasis here on renewables.”
How will a bill aimed at tackling climate change help consumers’ wallets as they deal with inflation? Professor Toyoda broke it down for us.
“By reducing our dependance on non-renewable energy, it should make us overall less vulnerable to price volatilities for things like oil and gas,” she explained.
Professor Toyoda told Western Mass News that the bill includes a lot of incentives, for both homeowners and businesses, to change how they power their homes.
Those incentives apply to buying electric cars. Rome explained that this legislation proposes a $7,500 rebate for those who purchase electric cars, and the state already offers a $2,500 dollar rebate, as well.
“The cars are probably $15,000 more expensive, but you’re going to get about $10,000 back, plus you’ll realize the reduction and monthly expense of spending $500 a month for gas, where you’ll spend $90 dollars a month for electricity,” Rome said.
Although the bill is called the Inflation Reduction Act, Professor Toyoda told us that we will not see the effects for probably a couple of years.
“We won’t really be seeing much of an immediate effect on our pocketbooks, but what we should be seeing is that, over time, there will be a moderate rise of prices going into the next year,” she explained.
This act still has to go through the House where it is expected to pass. That is coming up this Friday, then it will head to the President’s desk for his signature.
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