2024 Policy Look Ahead
2023 was a record-breaking year in climate and energy – for good and bad reasons. California reached its goal of 1.5 million ZEVs sold two years ahead of schedule, and also hit 10,000 DC fast chargers more than one year ahead of schedule. Across the United States, we saw the effects of the landmark Inflation Reduction Act (IRA), triggering the largest-ever investment – $369 billion – in U.S. climate, clean energy, electrification and energy efficiency. 2023 was also the hottest year on record, for the ninth consecutive year. Across the globe, countries were hit with all kinds of climate catastrophes - claiming 12,000 lives in the process.
While local, state, and federal regulators have made steps to curb emissions, the transportation sector remains the largest domestic source of greenhouse gas emissions, and those numbers continue to rise. Decades of research have shown that pollution from the transportation sector amplifies asthma attacks, heart attacks and strokes, lung cancer and premature death with low-income communities and communities of color disproportionately affected.
2024 has already kicked off with some big news! Here’s some highlights of what’s happened and what’s to come as we move toward a greener, healthier, and more sustainable 2024.
Revised Vehicle Emissions Standards
The Environmental Protection Agency (EPA) finalized their Multi-Pollutant Emissions Standards for light and medium duty vehicles model year 2027 and later. The EPA rules set standards that apply across the entire fleet -- meaning that an automaker can still make their regular ICE vehicles, so long as they make enough low or zero-emission vehicles that average out the greenhouse gas emission targets.
The new rule is expected to cut 7 billion tons of carbon emissions, $13 billion in annual public health benefits, and $62 billion in reduced annual fuel, maintenance, and repair costs for drivers. These standards announced are a huge driver in the transition to electric vehicles and our fight for clean air. These standards will reduce pollution-related health impacts that disproportionately affect low income and historically underserved communities.
Increased Guidance and Accelerated Rollout of IRA & IIJA Programs
The Inflation Reduction Act (IRA) will continue to accelerate green projects in the coming years. As this occurs, it is essential to increase awareness of and guidance for these programs among communities most impacted by the climate crisis. In addition to increasing technical support and awareness, we hope to see funding out into the communities who need it most as soon as possible. The first EV charging station funded by the EV Charging Action Plan was put online nearly 2 years following the Plan’s initial announcement.
Efforts made by the IRA are complemented by additional funding from the $1.2 trillion Infrastructure Investment and Jobs Act (IIJA), also known as the Bipartisan Infrastructure Law. In January, the Biden Administration announced $623 million for the Charging and Fueling Infrastructure (CFI) Discretionary Grant Program. These grants will help address EV charging gaps across the country and will align with the National Electric Vehicle Infrastructure (NEVI) formula program to build out our nation’s EV charging infrastructure network.
Electric Vehicle & Charging Station Tax Credits
Under the IRA, tax incentives and rebates are available for the purchase of electric vehicles and charging station infrastructure. The US Treasury Department released updated guidance on EV charger tax credit eligibility for individuals and businesses.
Electric Vehicle Tax Credit
There are now two types of EV tax credits and three ways to claim them. The EV tax credit for new vehicles is either $3750 or $7500, but very few new vehicles now qualify. You can claim the credit by either filing a Form 8936 on your federal tax return, or by receiving the credit immediately at the point of sale, in which you authorize the credit's transfer to the dealership
For used vehicles, the credit is worth 30% of the purchase price with a maximum credit of $4000. The claim process works the same way, only there is no credit for used leases and the credit applies only to individuals.
30C EV Charging Tax Credit
The IRA modified the limitation on the 30C EV charging tax credit so that it no longer applies on a per-site basis and instead now applies per single item of EV charging property (per charger).
The credit is limited to $1,000 for individuals claiming for home EV charging and $100,000 – up from $30,000 – for business properties. To qualify for the credit, chargers must be located in an eligible census tract, which can be found here.
Supporting Green Jobs
Workforce research and surveys show that a majority of young people are eager to work in the green economy or environmentally sustainable businesses, but they do not know how to find green jobs, or do not feel their education has prepared them for green jobs. The IRA is projected to stimulate as much as $800 billion in government spending and 9 million green jobs in the next 10 years. It also is projected to invest $60 billion in environmental justice, expanding resources for green initiatives and job training programs for BIPOC and rural communities.
At GreenWealth, we’ve seen the need on the ground for education, access, and comprehensive training to support the green energy transition – we are eager to support and help build the next generation of green jobs.
Help us lead the charge!
2024 is not merely a continuation of our journey; it is a call to action, a year where our commitment to sustainability must translate into tangible, impactful results. Q1 of 2024 has wrapped up strong, and we look forward to maintaining this momentum throughout the year and beyond! GreenWealth looks ahead with optimism, knowing that through collective effort, innovation, and strategic partnerships, we can shape a future that is both environmentally conscious and economically prosperous. Join us on this journey.
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