Inflation Reduction Act would lead to $1,800 in savings for average household, analysis finds

Sweeping climate and health care legislation unveiled by Democrats last week would lead to significant cuts in energy costs for American households, according to a new analysis.

A report by non-profit group Rewiring America found that the tax incentives included as part of the $369 billion dedicated to climate initiatives in the Inflation Reduction Act would save the average household $1,800 per year on energy bills.

“It is a market-tilting level of investment,” Ari Matusiak, the group's co-founder and CEO who was involved with the crafting of the bill, told Yahoo Finance. “The beneficiaries of [this measure] in the long term are going to be all of us on the planet. In the short term, it’s going to be Americans at their kitchen tables realizing savings on a month-to-month basis.”

The new measure sets out to accelerate the transition to renewable energy and dramatically reduce the country’s greenhouse gas emissions through a slew of tax incentives aimed at reducing the cost of electrification.