A new climate bill, if signed into law, could reduce domestic greenhouse gas emissions by approximately 40% below 2005 levels by 2030, according to multiple estimates.

The Inflation Reduction Act of 2022, passed by the Senate on Sunday, would invest $369 billion to fight against climate change. The bill lowers the costs of sustainable energy technologies and energy-saving devices.

Consumers could purchase electric vehicles, clean energy and electric appliances less expensively due to rebates and tax breaks.

How does the climate bill make electric vehicles more accessible?

The bill would extend the current $7,500 EV tax credit and offer a new $4,000 credit for used EVs, as part of the package to address climate issues.

"It will help transition our economy from a fossil fuel one to a clean electric one," said Ari Matusiak, CEO of nonprofit Rewiring America. "That’s really good news for American families and their pocketbooks. And it is really good news for the planet."

But automakers have expressed concerns, saying that 70% of EV models currently sold in the U.S. don’t qualify for the tax credits.

This results from the bill requiring that an EV's battery contain material extracted or processed in America or via a U.S. free trade partner, among other conditions. Auto lobbyists are now demanding changes to the bill.

Matusiak said that while electric vehicles are on average more expensive to purchase compared with gasoline-powered cars, most are less expensive to maintain and operate throughout the life of the car. More tax credits could also help the automobile industry transition from manufacturing gasoline-powered vehicles to electric cars.

"The tax credits now apply to used cars," Matusiak said. "And the more new EVs that are purchased in the market, the larger the used EV car market will be over time, as those cars are recycled or cycled out for new ones. It creates another way to drive affordability for everyday Americans."