Inflation Reduction Act Benefits Few, Reports Say
TL/DR –
Approximately two years after the Inflation Reduction Act, which included measures for clean energy tax credits, subsidies, and federal funding, was passed, most adults in the U.S. report insufficient knowledge about the law to evaluate its impacts. Some positive impacts are reported, especially among Democrats, and about a quarter of adults claim benefits from specific provisions like solar panel tax credits and incentives for clean energy technology manufacturing. However, there is a lack of consensus on the impacts of electric vehicles, and many believe that corporations, oil and gas companies, and developed countries, including the U.S., are not doing enough to address climate change.
Understanding the Impact of the Inflation Reduction Act
Almost two years post the Inflation Reduction Act, a comprehensive law incorporating tax credits, subsidies, and federal funding for green energy, significant fractions of adults feel under-informed about the law’s impacts on the U.S. economy, climate change, U.S. workforce, and inflation. Democrats are more inclined to perceive the law’s effects as beneficial.
Perception of the Inflation Reduction Act Among Adults
Many adults believe that the Inflation Reduction Act’s provisions have positively impacted their lives, although an equivalent number consider it inconsequential. About a quarter report benefiting from various provisions such as tax credits for installing solar panels, incentives for clean energy technology manufacturing, and renewable energy projects. However, fewer individuals report benefits from electric vehicle tax credits, energy-efficient appliance subsidies, and restrictions on oil and gas drilling leases.
Impact on Climate Change and Electric Vehicles
Adults predominantly believe these measures will more likely help combat climate change than exacerbate it. There seems to be no consensus on electric vehicles’ impact, with two-thirds saying that they have neither positively nor negatively affected them personally. The public generally views the impact on the U.S. economy as neutral.
Public Concern About Climate Change
Approximately 45% of the public has grown more concerned about climate change over the past year, with the same percentage reporting no change in their level of concern. Most of the public (71%) acknowledges the existence of climate change, and among those, 65% believe it is primarily caused by human activities.
Responsibility and Action Towards Climate Change
About 67% of the public believes that large corporations, oil and gas companies, and industrialized countries outside the U.S. are not adequately addressing climate change. Concurrently, 8 out of 10 people feel that these entities share at least some responsibility in combatting climate change. Despite this, a majority of the public does not trust either the Democrats or Republicans in Congress, Donald Trump, or President Biden to effectively address the issue.
Importance of Government Role in Environmental Protection
Most people believe in the importance of the federal government investing in green technologies and enforcing existing environmental regulations. About half support restricting companies’ greenhouse gas emissions, providing incentives for carbon footprint reduction, or enacting stricter environmental laws. Fewer individuals support the federal government incentivizing individuals to purchase electric vehicles, establishing a nationwide network of public electric vehicle charging stations, or restricting individuals’ greenhouse gas emissions.
The nationwide survey was conducted from April 4-8, 2024 using the AmeriSpeak® Panel, the probability-based panel of NORC at the University of Chicago. Interviews were conducted with 1,204 adults, both online and via telephone, and the margin of sampling error is +/- 3.9 percentage points.
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