WENDELL, N.C. — U.S. Treasury Secretary Janet Yellen visited Wake Technical Community College’s East Campus on Thursday to highlight the economic impacts of the Inflation Reduction Act (IRA) in North Carolina.
Joined by Gov. Roy Cooper, Rep. Wiley Nickel and Rep. Deborah Ross, Yellen toured the campus’ Central Energy Plant and praised Wake Tech’s leadership in clean energy education and technology adoption.
“What’s happening here is part of a broader transformation we’re seeing across the United States, thanks to the Biden-Harris administration’s economic agenda and Congress’ support for the IRA,” Yellen said.
Yellen emphasized the IRA’s role in reducing costs for American families through tax credits for residential clean energy and home energy efficiency improvements. According to IRS data, approximately 90,000 North Carolina families have claimed over $160 million in such credits for the 2023 tax year.
“These credits make home improvements more affordable for millions of families across the country,” Yellen said.
Yellen said households adopting solar energy could see annual savings of up to $2,000 once installation costs are recouped.
Yellen also highlighted the IRA’s impact on manufacturing and job creation in North Carolina. Treasury analysis shows that 97% of clean energy investments announced in the state since the IRA’s passage have been in counties with below-average college graduation rates.
“These investments are creating jobs for people and places that historically haven’t benefited from enough investment,” Yellen said.
Cooper praised the Biden administration’s support for North Carolina’s clean energy initiatives.
“Even some people who don’t believe in the fight against climate change know that this is where the private sector is going,” Cooper said. “This is where the jobs are coming. Let’s have North Carolina at the forefront of this and we are so grateful for the Biden-Harris administration and the generational investments that have been made to allow us to recruit these companies and to help us get here.”
Nickel and Ross both emphasized the IRA’s importance in combating climate change while creating economic opportunities.
“The skills being taught here at Wake Tech will power our economy for generations to come,” Ross said.
Addressing concerns about the current state of the U.S. economy, Yellen said while GDP growth and unemployment rates are strong, the administration recognizes that prices for key household expenses like healthcare, housing and energy remain high.
Yellen detailed the administration’s efforts to address energy costs, including the release of 180 million barrels from the Strategic Petroleum Reserve and implementing a price cap on Russian oil following the invasion of Ukraine. These actions, combined with record domestic oil and natural gas production, have helped keep gas prices lower for American families.
3.4 million American families have claimed $8.4 billion in residential clean energy and home energy efficiency tax credits so far for the 2023 tax year, according to data Yellen presented. Families claiming residential clean energy credits have received an average of $5,000, while those claiming energy efficiency credits have averaged $880.
Yellen also highlighted the $7,500 tax credit for qualifying electric vehicle purchases and said that consumers have saved $1.5 billion in upfront costs across purchases of more than 250,000 clean vehicles this year alone.
Yellen emphasized the IRA’s role in scaling up domestic manufacturing capacity, particularly in clean energy industries. She cited her visit to Livent in Bessemer, North Carolina, which built the first new lithium hydroxide production facility in North America in over a decade, expanding U.S. manufacturing capacity for this key electric vehicle battery input by 50%.
Yellen concluded by warning against efforts to roll back IRA credits, arguing such a move would raise costs for families, jeopardize manufacturing investments and potentially give an advantage to countries like China in critical industries.
“As we see clearly here in North Carolina, this would be a historic mistake,” Yellen said. “Rolling them back would raise costs for working families at a moment when it’s imperative that we continue to take action to lower prices. It could jeopardize the significant investments we’re seeing in manufacturing here and across the country, along with all the jobs that come with them.”
Yellen’s visit underscores the administration’s focus on promoting the IRA’s benefits as the 2024 election cycle approaches. With its investments in clean energy and manufacturing, North Carolina has emerged as a key battleground for demonstrating the law’s economic impact.
