Wealthy homeowners have received billions in tax credits under the Biden-Harris administration, while low-income households are getting little to no benefit from the same policy, according to an analysis by Politico's E&E News of a tax credit program.
The policy, expanded under the current administration, aims to encourage homeowners to invest in expensive solar panels. However, the expansion has further widened the gap between affluent Americans and the working class.
The analysis revealed that the top 25 percent of earners — those with taxable incomes of $100,000 or more — received 66 percent of the tax credits, totaling $5.5 billion. In contrast, the bottom 25 percent of earners, with taxable incomes below $25,000, only received $32 million.
Additionally, more than $2 billion of the credits went to households earning over $200,000 annually.
This disparity has raised alarms among economists and advocates, who are concerned that the tax credits are effectively funneling taxpayer money to those who do not need financial assistance to purchase equipment that already saves them substantial amounts on energy bills.
“It’s essentially affluent people receiving substantial tax credits for making their homes more energy-efficient,” Sanjay Patnaik, an economist at the Brookings Institution, told Politico.
“These tax credits don’t make things more affordable for families earning over $500,000. They can already afford the investments and benefit from lower energy costs,” said Mark Wolfe, executive director of the National Energy Assistance Directors Association.
This policy is reflective of Vice President Kamala Harris’s record, creating a “catch-22” situation for her campaign: Harris cannot criticize rising costs without undermining the policies of the Biden-Harris administration, yet she must promote these policies to support her record and candidacy.
This paradox has led to contradictory rhetoric from Harris, providing a target for Republican criticism. She has simultaneously praised some aspects of the Biden-Harris administration's achievements while portraying former President Donald Trump as the one responsible for stagnant wages and rising living costs, issues that have actually developed under the current administration.