This Is How the Inflation Reduction Act Will Impact Puerto Rico

Island residents will benefit from more affordable health care, prescription drugs, utilities, and electric appliances.

The Inflation Reduction Act (IRA), signed into law last month by President Joe Biden, promises to lower the cost of living for many Puerto Ricans on the island. 

For example, the IRA will increase access to medication by improving prescription drug coverage and lowering drug prices for Medicare recipients.

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The federal government will also provide incentives to create jobs in clean energy industries, including solar and wind. The act supports the development of offshore wind power along the coasts of the island. It will allow the Department of the Interior to conduct wind lease sales in feasible areas following consultations with the governor. 

However, the benefit that will likely be most attractive to Puerto Ricans is the lower energy costs. Currently, island residents pay exorbitant prices for one of the most outdated and inefficient electrical grids in the world.

How? The Act will make it more affordable for families on the island to purchase energy-efficient appliances and it will help them save money on their utility bills each month. 

The Act provides rebates covering 50-100% of the cost for low- and moderate-income households to install new electric appliances, and will save them at least $350 per year on energy bills.

In addition, Puerto Rico is expected to benefit from the boost given to US manufacturing of clean energy and transportation technologies through the IRA.

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The Act will protect communities on the island that are on the front lines of climate change by providing technical assistance funding to support climate action and increase resilience to extreme weather.

The IRA will also help farms in Puerto Rico take the lead on climate solutions and reward their stewardship.