With a month In hindsight, we’re getting a better idea of what the Inflation Reduction Act will mean for the US economy and the climate technology sector itself.
The new law surprised many, both in the field of climate technology and elsewhere. Few would have thought that sweeping climate legislation was possible. The final bill isn’t as comprehensive as some had hoped, but it has created a series of incentives that promise to boost innovation and manufacturing throughout the U.S. economy.
Although many pixels have been lit up about the expansion and expansion of tax credits for electric vehicles, it is an important provision! Some of the biggest shifts are likely to come from the myriad incentives the law offers homeowners and real estate investors to upgrade their buildings.
In my conversations with the founders over the past few weeks, almost all of them have said that the IRA, as it is now confusingly known, has been a major blow to their companies. Part of that optimism and confidence comes from the IRA’s approach to electrification and energy efficiency from different angles, giving the market a jolt of supply and demand signals that late-stage startups should support while encouraging new founders. to get into the game.