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Inflation Reduction Act could allocate most federal funding towards climate security 'ever'

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The U.S. Senate Democrats passed their long awaited inflation reduction act over the weekend. the bill focuses on a multitude of measures, such as taxes... healthcare.. and climate spending. KIMT News 3's Alek Lashomb spoke with a solar business and a electric car group about what the law means for consumers.

ROCHESTER, Minn.-U.S Senate Democrats passed their Inflation Reduction Act bill along a party line vote of 51-50, with Vice President Kamala Harris casting the tie breaking vote, on Sunday. 

The bill is estimated to cost around $740 billion dollars and will raise taxes on corporations, lower health insurance for some Americans and provide tax incentives for climate security and products. 

One of the climate provisions includes $60 billion dollars in tax credits for clean energy manufacturing and $30 billion worth of tax credits for the production of wind and solar.

Curt Shellum is the President of Solar Connection and said the production and manufacturing tax credits are an extension of what already exists. 

"The tax credits actually went into place, for solar and wind anyway, went into place in 2008 and they have been renewed once and now it is phasing out, so next year would be the second or third year of phasing down. So, this basically adds 10 more years to this," Shellum said. 

Some other climate tax credits also include electrical vehicles. 

The bill plans to provide a $4,000 dollar tax credit for individuals buying a used electric vehicle and $7,500 dollars for new electric vehicles. 

Founder of Rochester Electric Vehicles, Jonny Yucuis, said unlike other tax credits, the electrical vehicle credits can be applied during the purchase of a EV. 

"Looks like the credit actually applies at the point of purchase rather then when you are doing your taxes so you kind of get that immediate benefit. You get the feeling the happy feeling right away rather than waiting for when you do your taxes," Yucuis said. 

Yucuis said electric vehicle ownership has been growing in Olmsted County, with around 800 people estimated to own an EV. 

Shellum said his business primarily focuses on southeast Minnesota and Wisconsin but adds his company has carried out 300 solar panel jobs across the Med City, which he said equates to roughly two jobs a week. 

You can read the full bill here

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