Inflation Reduction Act

By signing the Inflation Reduction Act, President Biden is delivering on his promise to meet the climate crisis and build an economy that works for.

Millions of working families will have better access to the benefits they are entitled to under the tax code and be able to get their questions answered quickly and efficiently, thanks to the law’s transformational investments in the Internal Revenue Service. [promised](https://joebiden.com/healthcare/) to build on the ACA by making premium tax credits more generous and lowering health care premiums for working families. The Act will work to alleviate legacy pollution and to ensure that clean energy opportunities reach all Americans through: - Efficient Appliances and Home Upgrades – The law includes direct consumer rebates when households need to upgrade furnaces, water heaters, stoves, ovens, or other home appliances with more energy efficient and electric appliances. The legislation’s tax reforms won’t just raise revenue to finance critically needed investments to lower costs and combat climate change, they are also an important component of building an economy that rewards work rather than wealth and doesn’t let the rich and powerful get away with playing by a separate set of rules. The law will bring down energy costs for families and create thousands of good jobs, all while reducing climate pollution and ensuring that we have a clean, secure future energy supply. Overall, the law puts America on track to meet the President’s climate goals, which will save every family an average of $500 is taking to tackle the climate crisis and create clean energy solutions in American history. This measure could especially help young Americans buy their first car and skip the gas pump forever. For example, average family installing solar using this credit would save $9,000 on their electricity bill over the life of the system, or about $300 per year. It’s the most aggressive action we have taken to confront the climate crisis. By signing the Inflation Reduction Act, President Biden is delivering on his promise to meet the climate crisis and build an economy that works for working families.

Today, in response to President Joseph R. Biden signing the Inflation Reduction Act into law, Mayor Muriel Bowser released the following statement.

Mayor Bowser Twitter: “The Inflation Reduction Act proves what we know is possible – that we can make life better for everyday Americans without asking those who have already paid their fair share to pay even more. This legislation is the bold action Americans nationwide have been voting for: lower out-of-pocket costs for life-saving prescription drugs, lower health insurance premiums, lower energy bills, and more attention to the increasingly catastrophic effects of climate change.

President Joe Biden signed a sweeping $750 billion health care, tax and climate bill into law at the White House on Tuesday -- marking a major victory for ...

And today is part of an extraordinary story that's being written by this administration and our brave allies in the Congress." Fulfilling that pledge to you guides me every single hour of every single day on this job," Biden said at the signing ceremony. A series of events focused on the rollout of the new law is expected to take place in the coming weeks. Joe Manchin -- a major holdout throughout much of Biden's term in office -- played a key role in the legislation, agreeing to a deal that was announced at the end of last month. "To me, the critical duty of the presidency is to defend what is best about America. but it's not going to happen in the next two, three, four months." "For a while people doubted whether any of that was going to happen, but we are in a season of substance." accomplishes several key Biden legislative agenda items, representing the largest climate investment in American history and making major changes to health policy by giving Medicare the power for the first time to negotiate the prices of certain prescription drugs and extending expiring health care subsidies for three years. Democrats are fighting to maintain their narrow majorities in Congress. "Every single Republican in Congress voted against lowering prescription drug prices, against lowering health care costs, against the fair tax system. Every single Republican -- every single one -- voted against tackling the climate crisis, against lowering our energy costs, against creating good paying jobs. Too often we hand the biggest microphones to the critics and the cynics who delight in declaring failure while those committed to making real progress do the hard work of governing," the President told the audience.

President Biden signed the Inflation Reduction Act (IRA), which includes funding and major federal policy changes impacting the U.S. healthcare sector, ...

It is not designed to be, and should not be used as, the sole source of information when analyzing and resolving a legal problem, and it should not be substituted for legal advice, which relies on a specific factual analysis. Pandemic preparedness has long been a priority for Burr, who authored the Pandemic All-Hazards Preparedness Act (PAHPA) and is retiring at the end of the year. User Fees: Congress must act by the end of September to authorize the user fees that are responsible for funding a significant amount of the U.S. If enacted, the legislation would establish an electronic prior authorization program for Medicare Advantage (MA) plans, promote increased transparency surrounding which services are subject to prior authorization, as well as the rates of denial and delay, and ultimately lessen the administrative burden placed on providers. Enhanced Payments for Biosimilars: To incentivize the uptake of biosimilars, the IRA temporarily increases the Medicare Part B add-on payment for certain biosimilars from 6 percent to 8 percent of the reference product's average sales price (ASP) from Oct. A manufacturer subject to a rebate would receive a rebate invoice within six months of the end of the rebate quarter. Manufacturers will be subject to significant civil monetary penalties (CMPs) up to 10 times the difference between the MFP and the price charged for failing to offer the MFP with respect to a Medicare beneficiary, violating the terms of an agreement or knowingly providing false information. When a beneficiary has incurred out-of-pocket costs and discounts slightly in excess of $7,000, they reach what is known as the "catastrophic phase" of the benefit, where they pay 5 percent of the cost of their drugs (while Medicare covers 80 percent and plans cover the remaining 15 percent). To avoid efforts to game this provision (for instance, being licensed but not marketed), if the biosimilar does not come to the market during the two-year period, the originator biologic manufacturer would be required to pay a rebate for the maximum fair price (MFP) amount and the biologic would be included in the selected drug list for the next applicable price period. Food and Drug Administration (FDA)-approved drugs for which at least seven years have elapsed from approval and for which there is no generic on the market and 2) FDA-licensed biologics for which at least 11 years have elapsed since licensure and for which there is no biosimilar on the market. Drugs must be selected by the Centers for Medicare & Medicaid Services (CMS) and an agreement must be reached with the manufacturer two years before the new price will apply. The Affordable Care Act (ACA) created subsidies to offset the cost of health insurance, capping how people signing up on the ACA Marketplaces pay at a certain percent of their income.

President Biden signed Democrats' hallmark spending bill into law on Tuesday, a major legislative victory punctuating a string of bipartisan legislative ...

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The measure promises lower health-care and energy costs for American families. Here's what that could mean for you. Image without a caption.

But even then, analysts note they have “a low level of confidence that the legislation would have any measurable impact on inflation.” “They take place a little bit at a time, but it’s going to make the Medicare recipient happier.” Households across the country have been dealing with fast-rising prices — which are up about 8.5 percent from a year ago — on a range of essentials, including groceries, gas and housing. “There will be substantial tax credits to help transition to clean energy: rebates for people who buy electric vehicles, who put solar panels on their house, who make other kinds of energy efficiency-enhancing improvements to their home,” said Heidi Shierholz, president of the Economic Policy Institute, a left-leaning think tank. That could save Americans 2 billion hours and $30 billion in tax-filing fees every year, according to Emily DiVito, a senior program manager at the Roosevelt Institute. … Exposing Americans of all income levels to electrification will have a really positive impact on our ability to transition.” More immediately, pharmaceutical companies will have to pay rebates starting next year if they raise medication prices faster than inflation. “Folks will get their phone calls returned a lot quicker,” Hoagland said. The Inflation Reduction Act is Congress’s latest effort to usher in a new era of greener climate change policy. “Most households will not see much change right away, but some will see real reductions in what they’re paying for things like health care and energy.” Critics say it will lead to higher taxes, particularly for corporations, and will be ineffective in bringing down decades-high inflation. To that end, it includes $80 billion in rebates, including as much as $14,000 in money back, helping households pay for green-energy upgrades.

After more than a year of debate, Biden's sweeping infrastructure bill is became law — albeit a significantly smaller version of his Build Back Better plan.

The bill narrowly passed the U.S. In this historic moment, Democrats sided with the American people and every single Republican in the Congress sided with a special interest in this vote," he said. [Build Back Better](https://www.whitehouse.gov/build-back-better/) bill, including universal child care and tax cuts for the middle class. The $437 billion spending package is expected to raise $737 billion in revenue over the next decade, the biggest share coming from reductions in drug prices for Medicare recipients and tax hikes on corporations. Vice President Kamala Harris cast the tiebreaking vote, giving Democrats a win. "Let's be clear. It's projected to reduce the deficit by more than $300 billion over a decade. and Kathy Castor, D-Fl. Va.; and Reps. - The more than $430 billion package is expected to reduce the deficit by more than $300 billion over a decade. The new law includes a $369 billion investment in climate and energy policies, $64 billion to extend a policy under the Affordable Care Act to reduce health insurance costs, and a 15% corporate minimum tax aimed at companies that earn more than $1 billion a year. - The new law passed with majority Democratic support in the Senate and the House.

The extra cash for clean energy, electric vehicles, efficient manufacturing, and pollution cleanup will go a long way to nudging the US closer to sustainable ...

[transitioning to solar and wind,](https://www.vox.com/2016/2/26/11116230/rural-electric-co-ops-solar) first they have to shut down the coal plants. The forest and agriculture land policies in the bill are enough to suck up emissions equivalent to the annual emissions from 19 million cars by 2030, based on Princeton’s modeling. The more controversial part of the bill is its funding of carbon capture for oil, coal, and industrial sites. Some of those sticks are going to be the Clean Air Act and the federal government. This is critical because the US is expected to lose more of its natural carbon sinks over time under business-as-usual scenarios. Some are going to be states through their legislatures and through the public utility commissions.” Joe Manchin’s (D-WV) sign-off: $10 billion in direct payments to rural electric co-ops that pay for the cost of a clean energy transition. Grassroots advocates are working to draw national attention to impassable roads in [New Orleans](https://www.cnu.org/what-we-do/build-great-places/claiborne-expressway) and [Seattle](https://lidi5.org/). In terms of emissions cuts, boosting zero-carbon energy from its current [20 percent](https://www.eia.gov/tools/faqs/faq.php?id=427&t=3) of the grid will pack the biggest punch of the IRA’s emissions reductions. But one way communities could use the funding is to just remove a road, highway, or other types of damaging infrastructure. People who remained near these roads, overwhelmingly communities of color, were exposed to more fine particulate matter from the tailpipes of cars and trucks. The extra cash for clean energy, electric vehicles, efficient manufacturing, and pollution cleanup will go a long way to nudging the US closer to sustainable climate targets.

Governor Ned Lamont released the following statement regarding today's signing of the Inflation Reduction Act of 2022 by President Joe Biden.

I thank and commend President Biden and Connecticut’s Congressional delegation for this tremendous accomplishment.” “Once again, President Biden and Congressional Democrats have delivered results for America. (HARTFORD, CT) – Governor Ned Lamont released the following statement regarding today’s signing of the Inflation Reduction Act of 2022 by President Joe Biden:

Several analyses have found it won't immediately affect inflation — but it does intend to reduce health care costs, counter climate change and reduce the ...

By signing the Inflation Reduction Act, President Biden is delivering on his promise to build an economy that works for working families, including Black.

The legislation will bring down energy costs for Black families and create thousands of good jobs, all while reducing climate pollution and ensuring that we have a clean, secure future energy supply. The Inflation Reduction Act of 2022 is a critical step forward in making our tax code fairer. The Inflation Reduction Act takes the most aggressive action on climate and clean energy in American history. - Small businesses can deduct up to $1.00 per square foot of their business for making high energy efficiency upgrades. And, no family making less than $400,000 per year will see their taxes go up by a single cent. [3.9 million Black people](https://www.kff.org/uninsured/issue-brief/key-facts-about-the-uninsured-population/) were uninsured in 2019 before President Biden took office and over [570,000 Black people](https://www.kff.org/policy-watch/taking-a-closer-look-at-characteristics-of-people-in-the-coverage-gap/) fell into the Medicaid “coverage gap” and were locked out of coverage because their state refused to expand Medicaid. And, these appliances will save families money on their utility bills in the long run. The law: [1.5 times](https://aspe.hhs.gov/sites/default/files/documents/1e2879846aa54939c56efeec9c6f96f0/prescription-drug-affordability.pdf) as likely as White beneficiaries to have trouble affording medications, and about [2 times](https://aspe.hhs.gov/sites/default/files/documents/1e2879846aa54939c56efeec9c6f96f0/prescription-drug-affordability.pdf) as likely to not fill needed prescriptions due to cost. By signing the Inflation Reduction Act, President Biden is delivering on his promise to build an economy that works for working families, including Black families. High prices contribute to racial and ethnic health inequities. It’s the most aggressive action we have taken to confront the climate crisis.

It's the “final piece” of the president's pared-down domestic agenda as he aims to boost his party's standing with voters ahead of midterm elections.

Medicare would gain the power to negotiate its costs for pharmaceuticals, initially in 2026 for only 10 drugs. The administration has disputed that anyone but high earners will face increased tax scrutiny, with Treasury Secretary Janet Yellen directing the tax agency to focus solely on businesses and people earning more than $400,000 per year for the new audits. He will also stop in Pennsylvania to promote his administration’s plan for safer communities, a visit that had been planned the same day he tested positive for COVID-19 last month. Biden signed the bill into law during a small ceremony in the State Dining Room of the White House, sandwiched between his return from a six-day beachside vacation in South Carolina and his departure for his home in Wilmington, Delaware. The president and lawmakers have also responded to Russia’s invasion of Ukraine and overwhelmingly supported NATO membership for Sweden and Finland. The 79-year-old president aims to restore his own standing with voters as he contemplates a reelection bid. [WATCH: How the Inflation Reduction Act aims to lower drug costs](https://www.pbs.org/newshour/show/how-the-inflation-reduction-act-aims-to-lower-drug-costs) Republicans say the legislation’s new business taxes will increase prices, worsening the nation’s bout with its highest inflation since 1981. Medicare beneficiaries’ out-of-pocket prescription costs would be limited to $2,000 annually starting in 2025, and beginning next year would pay no more than $35 monthly for insulin, the costly diabetes drug. [approved the measure](https://www.pbs.org/newshour/show/news-wrap-house-lawmakers-give-final-approval-to-the-inflation-reduction-act) on a party-line 220-207 vote. It also would help an estimated 13 million Americans pay for health care insurance by extending subsidies provided during the coronavirus pandemic. “Every single one.”

The ambitious law aims to tamp down on inflation, lower prescription drug prices, address climate change, reduce the deficit and impose a minimum tax on the ...

She also criticized Republicans for uniting in opposition to the bill and said Democrats would continue to fight for provisions that had been dropped as a compromise, such as Medicare expansion and free universal prekindergarten. On Tuesday, Schumer personally thanked Manchin “for working hard to get this done,” and credited Biden and the Democratic caucus for their persistence. As White House officials have repeatedly said over the last week, Biden emphasized again Tuesday that no one making under $400,000 a year would pay “a penny more” in taxes. “Let’s be clear: In this historic moment, Democrats sided with the American people and every single Republican in the Congress sided with the special interests,” Biden said. “My fellow Americans, that’s the choice we face,” he added. The bill would also allow Medicare to negotiate the price of prescription drugs and extend health insurance subsidies for millions of Americans. “Now in normal times, getting these bills done would be a huge achievement, but to do it now, with only 50 Democratic votes in the Senate, over an intransigent Republican minority, is nothing short of amazing.” It would also give the badly underfunded Internal Revenue Service its biggest budget increase in its history — a provision House Minority Leader Kevin McCarthy (R-Calif.) Schumer (D-N.Y.)](https://www.washingtonpost.com/us-policy/2022/07/27/manchin-says-he-has-reached-deal-with-democrats-economy-climate-bill/?itid=lk_inline_manual_12&itid=lk_inline_manual_24&itid=lk_inline_manual_14) on what would become known as the Inflation Reduction Act. At one point, he glanced at Manchin and quipped, “Joe, I never had a doubt,” to some laughter. After Biden inked his signature — and Schumer proclaimed, “It’s now law!” — the president handed the pen he used to Manchin and shook his hand. The bill’s passage marked one of the most successful legislative efforts by congressional Democrats this session, ahead of contentious midterm elections — and also one that seemed increasingly unlikely for about a year and a half.

President Biden is enacting climate action at a previously unprecedented scale in the United States and establishing a significant environmental legacy in ...

“Climate will be a legacy issue for this president and this Congress. But to reach 100 percent clean power, Orvis said other mechanisms in addition to the tax credits will likely be needed. Senate, to get the ball across the finish line.” And the lack of U.S. “I think he understood that his legacy would be defined by what he does on climate. Without the package, it would be difficult for the U.S. It’s a BFD,” Melinda Pierce, legislative director of the Sierra Club, told The Hill on Tuesday. The legislation includes nearly $370 billion toward energy security and climate change mitigation. Biden, during his first year in office, pledged to cut U.S. On the whole, the legislation’s passage and signing is expected to give Biden a big win on climate. “But we haven’t really had a comprehensive, across the suite of clean energy technologies — a long-term clean energy tax credit regime that provides business certainty so that companies can invest in the technologies and research and development and supply chains to really grow the clean energy industry across all the sectors of the economy,” Orvis said. The new law includes tax credits that incentivize a clean energy buildout, other credits that incentivize energy efficient homes and buildings, and a policy that seeks to limit the release of planet-warming methane from oil and gas operations.

At least half of voters still support the individual provisions in Democrats' signature legislation, with the exception of fresh IRS funding.

- Half of voters backed the 1% excise tax on stock buybacks by corporations, a measure added to Democrats’ package after the previous Morning Consult/Politico survey. A new Morning Consult/Politico [survey](https://assets.morningconsult.com/wp-uploads/2022/08/16155007/2208087_crosstabs_POLITICO_RVs_v1_8-17-22_SH.pdf), however, finds an electorate skeptical that the Inflation Reduction Act will live up to its name, though still supportive of most of the individual measures that make up the package. Prior to the bill’s passage in the Senate, a But roughly a third of voters said they think the IRA would actually make inflation worse, including nearly 2 in 3 Republicans. - Roughly 1 in 5 voters, regardless of party, thought the spending package would do nothing to affect rising prices one way or the other. [lauded the package](https://twitter.com/JoeBiden/status/1559291843757723649)for offering financial relief for American families thanks to its tax breaks for green energy improvements and the potential for lower drug prices.

It was the Green New Deal movement that made massive federal investment in clean energy a must-pass priority of the Democratic Party.

[demands](https://www.theguardian.com/environment/2022/apr/03/scientists-urge-end-to-fossil-fuel-use-as-landmark-ippc-report-readied) a much more dramatic drop in carbon emissions than what the bill alone would yield. Now, [the climate left has adopted this strategy](https://www.nytimes.com/2022/07/29/opinion/environment/joe-manchin-climate-inflation-bill.html), using ruptures in society—both the coronavirus pandemic and the extreme weather of a warming planet—to shift the terrain on which politicos operate. By claiming the role of a more muscular federal government, these bills represent a ragged break from the neoliberal dogma that undermined climate legislation for decades. [provision](https://www.bloomberg.com/news/articles/2022-07-28/manchin-deal-mandates-oil-and-gas-lease-sales-in-gulf-and-alaska) that requires the federal government to auction public lands for fossil fuel extraction before leasing them for the development of renewables. Designed by [neoliberal economists](https://surface.syr.edu/cgi/viewcontent.cgi?article=1038&context=lawpub) and [handpicked by fossil fuel companies](https://merid.org/wp-content/uploads/2019/07/USCAP-A-Call-for-Action.pdf) as their preferred climate solution, cap-and-trade was nevertheless [pilloried](https://archive.nytimes.com/www.nytimes.com/cwire/2010/09/30/30climatewire-how-republicans-managed-to-rebrand-cap-and-t-95204.html?pagewanted=all) by Republicans as government overreach. If the Green New Deal represents the holy trinity of climate action, what climate writer Dave Roberts [describes](https://www.vox.com/energy-and-environment/21252892/climate-change-democrats-joe-biden-renewable-energy-unions-environmental-justice) as “investments, standards, and justice,” then the IRA fails on two of the three. [oil CEOs](https://www.bloomberg.com/news/articles/2022-07-29/exxon-s-woods-calls-manchin-bill-step-in-the-right-direction) and [climate policy analysts](https://www.evergreenaction.com/press/senate-democrats-must-move-immediately-to-pass-inflation-reduction-act) could cheer. Actions that these institutions take “depend on the ideas that are lying around.” These ideas define what’s politically possible at any moment in time, setting the terms of debate in D.C. Even as Americans faced the worst depression since the great one, the White House was still hemmed in by the ideological constraints of neoliberalism—refusing to consider, for example, What Yglesias undersells is the movement strategy that made massive federal investment in clean energy a must-pass priority of the Democratic Party. Alexandria Ocasio-Cortez [joined](https://www.dissentmagazine.org/online_articles/sunrise-movement-green-new-deal) young people sitting in at Nancy Pelosi’s office calling for Congress to act, the Democratic majority in Congress finally passed federal climate legislation. The era of big government is back.

The spending bill will cut emissions, but marginalized groups feel they were sold out ... The Inflation Reduction Act signed into law Tuesday by President Biden ...

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There is a compelling case for strengthening the enforcement of existing taxes, rather than creating new ones, as a way to raise revenue. The economic costs of ...

+$78.90 billion $150.3 billion +$3.18 billion $33.6 billion +$4.75 billion $3.1 billion +$25.33 billion $47.6 billion +$45.64 billion $66.0 billion The existing package is projected to raise $203 billion in gross revenue and $123 billion in net revenue. The Inflation Reduction Act increases the IRS budget by roughly $80 billion over 10 years.

The Inflation Reduction Act also contains a slew of smaller but significant investments in climate action at the state level.

“The system is approaching a tipping point, and without action we cannot protect the system and the millions of Americans who rely on this critical resource,” M. The academy said that Lubchenco violated its code of conduct before joining the Biden administration last year. “Protecting the system means protecting the people of the American West.” After Biden signed, he handed the pen to Manchin and shook his hand. Climate Alliance, a bipartisan coalition of governors committed to meeting the goals of the Paris agreement: The White House is also planning an event Sept. “Implementing this package is going to be no small task, but I know governors are up to the challenge.” [lower the price of crudité](https://twitter.com/JohnFetterman/status/1559680675430776833?s=20&t=FdV1rdSsahGZWxPGhKG9hA). In 2011, Connecticut established the nation’s first state-level green bank through bipartisan legislation. “What's monumental about this package is that it recognizes the role of states in confronting the climate crisis,” Casey Katims, executive director of the U.S. Schumer (D-N.Y.) and Sen. “When the tale is told, I think these will be shown as the most effective provisions,” Inslee said.

When President Joe Biden rejoined the Paris Agreement on his inauguration day, the United States indicated its intent to lead the world in tackling climate ...

In addition, the United States and other developed countries have failed to meet the [$100 billion per year](https://www.nature.com/articles/d41586-021-02846-3) climate finance commitment for assisting developing countries with their clean energy transitions and adaptation plans. [U.S.-EU Task Force on European Energy Security](https://www.whitehouse.gov/briefing-room/statements-releases/2022/06/22/readout-of-u-s-eu-task-force-on-european-energy-security-meeting/) ramps up deployment of energy efficiency technologies such as heat pumps and smart thermostats, the Inflation Reduction Act supports this work by providing [$500 million](https://www.politico.com/news/2022/07/28/democrats-climate-energy-legislation-00048393#:~:text=Defense%20Production%20Act%20The%20legislation%20includes%20%24500%20million,heat%20pumps%20and%20spur%20critical%20minerals%20processing%20projects.) in funding to support the production of heat pumps and spur critical mineral processing projects. By also delivering on the issues of climate finance, loss and damage, adaptation, JET-Ps, and international climate justice, the United States can truly claim to have regained its position as a global climate leader. Framework Convention on Climate Change (UNFCCC) Conference of Parties in Glasgow, Scotland, where [world leaders agreed](https://unfccc.int/process-and-meetings/the-paris-agreement/the-glasgow-climate-pact-key-outcomes-from-cop26) to keep the 1.5 degree goal [alive](https://unfccc.int/process-and-meetings/the-paris-agreement/the-glasgow-climate-pact-key-outcomes-from-cop26) and recommitted to the still-unmet goal of $100 billion in international climate finance. European Union nations are also actively pursuing new oil and gas investments in Africa—in [stark contradiction](https://foreignpolicy.com/2022/07/20/europe-africa-energy-crisis-oil-gas-fossil-fuels-russia-ukraine-war/) to their previous stance on energy development and promises to [aid a clean energy transition](https://www.neweurope.eu/article/eu-pushes-renewable-energies-africa/) on the African continent. The Inflation Reduction Act will improve U.S. These transitions are necessary in high-emitting countries and countries seeking energy independence, as well as in [countries with limited emissions ](https://www.iea.org/news/it-s-time-to-make-clean-energy-investment-in-emerging-and-developing-economies-a-top-global-priority)that have the opportunity to leap-frog over fossil fuel-based economies on their development pathway. These investments, paired with domestic content credits and the Biden administration’s robust “ [Made in America](https://www.whitehouse.gov/omb/management/made-in-america/)” agenda, will give the United States the necessary tools to incorporate climate and economic objectives into multilateral trade discussions. [22 percent](https://www.wri.org/data/climate-watch-cait-country-greenhouse-gas-emissions-data) of historic greenhouse gas (GHG) emissions—the equivalent of the historic emissions of [181 countries](https://www.wri.org/data/climate-watch-cait-country-greenhouse-gas-emissions-data) combined. [set the goal](https://www.whitehouse.gov/briefing-room/statements-releases/2021/04/22/fact-sheet-president-biden-sets-2030-greenhouse-gas-pollution-reduction-target-aimed-at-creating-good-paying-union-jobs-and-securing-u-s-leadership-on-clean-energy-technologies/) of reducing U.S. [rejoined the Paris Agreement ](https://www.nytimes.com/2021/02/19/world/us-rejoins-paris-climate-accord.html)on his inauguration day, the United States indicated its intent to lead the world in tackling climate change. emissions 50 to 52 percent below 2005 levels by 2030, the administration made pledges in 2021 to [increase international climate finance](https://www.cnn.com/2021/09/21/politics/biden-climate-change-global-funding/index.html), [ address adaptation](https://www.whitehouse.gov/wp-content/uploads/2021/10/Full-PREPARE-Plan.pdf), [reduce methane emissions](https://www.whitehouse.gov/briefing-room/statements-releases/2021/09/18/joint-us-eu-press-release-on-the-global-methane-pledge/) and [deforestation](https://ukcop26.org/glasgow-leaders-declaration-on-forests-and-land-use/), and [help high-emitting countries transition](https://foreignpolicy.com/2021/11/12/coal-climate-south-africa-cop26-agreement/) away from coal and other fossil fuel energy sources.

After President Joe Biden signed the Democrats' climate change and health care bill, leaders who represent Virginia at the state and federal levels are ...

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The Inflation Reduction Act includes provisions that could help you save on health insurance, prescription drugs and home energy improvements.

[uncertain that the bill will live up to its name](https://www.cnbc.com/2022/08/08/economist-inflation-reduction-act-wont-curb-inflation-short-term.html) by curbing rising prices for American consumers. The credit, worth up to $7,500 on the purchase of new vehicles, is available through 2032. All told, you may qualify for up to $10,000 in tax breaks and rebates, The sweeping $739 billion spending package — a reduced version of the administration's [Build Back Better](https://www.cnbc.com/2021/11/12/build-back-better-would-cut-taxes-for-nearly-all-households-next-year.html) plan — aims to reduce health-care costs, shrink the deficit and combat climate change. This will include the drugs that Medicare patients spend the most money on, many of which have been on the market for years without generic competition. The new bill extends the tax breaks on health insurance through the end of 2025. The negotiations will take some time. would see premium payments rise," Krutika Amin, associate director for the Kaiser Family Foundation's Affordable Care Act program, [ according to an analysis from CNBC](https://www.cnbc.com/2022/08/13/how-to-qualify-for-inflation-reduction-act-climate-tax-breaks-rebates.html). [told CNBC](https://www.cnbc.com/2022/08/08/expanded-health-care-subsidies-stay-intact-under-inflation-reduction-act.html) before the bill's passage. [negotiate prices for some of the most expensive drugs](https://www.cnbc.com/2022/08/12/drug-prices-passage-of-inflation-reduction-act-gives-medicare-historic-new-powers.html) covered under Medicare Part B (which covers drugs administered by health-care providers) and Part D (which covers drugs from retail pharmacies). [signed the Inflation Reduction Act into law](https://www.cnbc.com/2022/08/16/watch-live-biden-to-sign-inflation-reduction-act-into-law-setting-15percent-minimum-corporate-tax-rate.html).

We're back tonight with a Live Stream on YouTube covering the latest on the Inflation Reduction Act and Fisker Ocean.

[OSR Garage](https://www.youtube.com/osrgarage) will be guest hosting tonight on [Fiskerati Live](https://youtu.be/dbZjHGQuhSI). Also, we’ve invited certain [Club members](https://fiskerati.com/club) to make a guest appearance. We hope you can join us for an hour of Fisker-related discussion. We’re going to briefly discuss the latest on the [Inflation Reduction Act](https://fiskerati.com/fisker/fisker-implements-plan-for-7500-ev-tax-credit/), specifically the new IRS update to the [Plug-In Electric Drive Vehicle Credit](https://www.irs.gov/businesses/plug-in-electric-vehicle-credit-irc-30-and-irc-30d). Don’t miss the show! [Live Streaming on YouTube](https://youtu.be/dbZjHGQuhSI) to discuss a few things in the world of Fisker.

By signing the Inflation Reduction Act, President Biden is delivering on his promise to build an economy that works for working families, including rural.

The Inflation Reduction Act will help keep distressed farmers farming and provide assistance to farmers who have experienced discrimination in USDA’s leading programs. Because of this legislation, farmers, ranchers, and foresters will have the tools they need to adopt practices that recognize the valuable role our lands provide in tackling the climate crisis. The Inflation Reduction Act of 2022 is a critical step forward in making our tax code fairer. - Thanks to the American Rescue Plan, 65 percent (1.3 million) of the 1.9 million rural uninsured Americans in states using the HealthCare.gov had access to a $0-premium health insurance plan for 2021. We need every farmer to contribute to reducing food inflation and feeding the nation and the world. - Rural electric cooperatives, which serve 42 million customers, resources to advance clean energy projects, energy efficiency improvements, zero-emission systems, and more. Lower Prescription Drug Costs for Seniors: Because seniors disproportionately choose to live in rural America, rural Americans stand to disproportionately benefit from the Inflation Reduction Act as it lowers prescription drug costs for seniors on Medicare. Lower Health Insurance Premiums and Expand Coverage: Since the implementation of the ACA’s coverage expansions, the uninsured rate among rural Americans decreased by 8%, from about 24 percent in 2010 to 16 percent in 2019. The law invests in rural communities to expand access to affordable clean energy and energy efficiency upgrades, create good-paying jobs through climate-smart agriculture and conservation, and protect communities from intensifying climate impacts like wildfires and extreme heat. The Inflation Reduction Act will help keep free or low-cost health insurance available to rural Americans, with average savings of about $800 per person per year. The Inflation Reduction Act increases access to medication in rural areas by improving prescription drug coverage and lowering drug prices in Medicare. By signing the Inflation Reduction Act, President Biden is delivering on his promise to build an economy that works for working families, including rural families.

providing incremental tax credits for certain renewable projects that are placed in service after 2022 and meet certain “domestic content” requirements and/or ...

In the case of a solar facility that qualifies for an aggregate “base” and “bonus” ITC rate of 30%, the ITC rate would be increased to 40%. Prior to the Act, for certain projects beginning construction after 2019, the 30% ITC percentage otherwise available was reduced to 26% (in the case of projects beginning construction before 2023) and was scheduled to be reduced to 22% (in the case of projects beginning construction during 2023). A further reduction to 50% of the credit amount will occur in the following year and no credits will be allowed for projects that begin construction thereafter. It provides a two-tier, inflation-adjusted tax credit equal to the corresponding PTC amounts (0.3 cents/kWh “base”/1.5 cents/kWh maximum, as adjusted for inflation (which for taxable year 2022 is equal to 2.6 cent/kWh)) for electricity produced at qualified facilities that are placed in service after December 31, 2024 and sold to unrelated taxpayers. In the case of solar projects, the credit percentage was scheduled to be further reduced to 10% in the case of projects beginning construction after 2023 or placed in service after 2025. In the case of certain other technologies, the credit was scheduled to be eliminated in the case of projects beginning construction after 2023 or placed in service after 2025. Projects not satisfying either of these requirements for which a direct pay election is made would be subject to a 10% reduction in the otherwise available credit amount (and therefore would be eligible for only a 90% direct payment) if they commence construction in 2024, a 15% reduction if they commence construction in 2025, and a 100% reduction (hence, no direct payment) if they commence construction in 2026 or thereafter. In addition, with the reintroduction of the PTC election for solar (and the extension of the ITC election for PTC facilities), for projects not yet placed in service, developers and tax equity investors will need to evaluate both options and determine whether the ITC or PTCs have more value. In the case of projects for which credits are claimed under new Sections 45Y or Section 48E (each of which is discussed below), the specified percentage is determined by reference to the date on which construction of a project begins and increases annually from 40% (20% in the case of offshore wind) to 55% in 2027 (2028 in the case of offshore wind). The Act provides that for taxable years beginning after December 31, 2022, eligible taxpayers may transfer all or a portion of their eligible credits to a taxpayer that is not related to the transferor taxpayer (within the meaning of Section 267(b) or 707(b)(1)). Projects qualifying for certain credits under Section 45 (PTC) and Section 48 (ITC) and the credits described below under new Section 45Y (clean electricity production tax credit) and new Section 48E (clean electricity investment credit) could qualify for a 10% increase to the “base” and “bonus” credits if they satisfy a new “domestic content” requirement.2 To qualify for this additional credit, taxpayers must ensure that the steel, iron, or other manufactured products that comprise the project are produced in the United States. The Act replaces the existing credit regime with a two-tier system that requires taxpayers to satisfy certain prevailing wage and apprenticeship requirements in order to qualify for the “bonus” credit amount (i.e., for a total of 100% of the maximum available tax credits (2.6 cent/kWh of PTCs for 2022 or 30% ITC).

Carbon capture, utilization, and sequestration projects around the United States received a significant boost from the Inflation Reduction Act of 2022.

14.” [[2]](#_ftnref2) https://www.democrats.senate.gov/imo/media/doc/inflation_reduction_act_one_page_summary.pdf [[3]](#_ftnref3) 45Q credits are authorized by section 45Q of the Internal Revenue Code of 1986 (the “Code”). The IRA makes similar changes to 45Q credits for QCO captured by direct air capture (“DAC”) facilities, but the availability of 45Q credits for DAC facilities is even larger. Cannon](https://www.gibsondunn.com/lawyer/cannon-michael-q/) – Dallas (+1 214-698-3232, [[email protected]](mailto:[email protected])) [Matt Donnelly](https://www.gibsondunn.com/lawyer/donnelly-matt/) – Washington, D.C. [[6]](#_ftnref6) In addition to meeting this minimum requirement, the capture design capacity of the carbon capture equipment at the applicable electric generating unit at the CCUS project must be at least 75% of the baseline carbon oxide production of that unit. [[1]](#_ftnref1) As was the case with the so-called Tax Cuts and Jobs Act, the Senate’s reconciliation rules prevented Senators from changing the Act’s name and so the so-called Inflation Reduction Act is actually “An Act to provide for reconciliation pursuant to title II of S. Regulatory guidance will be needed to flesh out the details of this reasonable cause exception and other details of how the excessive credit transfer and excessive payment rules will operate in practice. The IRA effectively increases the above rates to $60/MT and $85/MT (before inflation adjustments) respectively; however the IRA conditions the availability of these credit amounts on satisfying new prevailing wage and apprenticeship requirements (otherwise, the new rates are reduced by 80 percent). The IRA relaxes the annual thresholds that CCUS facilities must satisfy to be eligible for 45Q credits. In the case of a transfer, the cash payment received by the transferor will not be treated as taxable income, and the third party transferee may not deduct the cash payment. The IRA reduces the capture quantity requirements for all other industrial facilities to 12,500MTs. The IRA substantially increases the availability of 45Q credits. [[4]](#_ftn4) The IRA also extends the deadline to begin construction on 45Q credit-eligible projects from 2026 to 2033.

Penn experts explain the climate, health care, and economic aspects of the legislation that President Biden signed into law this week, plus the politics of ...

Eilers Professor of Health Care Management and Economics at the [Wharton School](https://www.wharton.upenn.edu/) and a professor of medicine at the [Perelman School of Medicine](https://www.med.upenn.edu/). [Kent Smetters](https://bepp.wharton.upenn.edu/profile/smetters/) is the Boettner Professor of Business Economics and Public Policy at the [Wharton School](https://www.wharton.upenn.edu/) and faculty director of the [Penn Wharton Budget Model](https://budgetmodel.wharton.upenn.edu/). He holds a secondary appointment in the [Business Economics and Public Policy Department](https://bepp.wharton.upenn.edu/) at the [Wharton School](https://www.wharton.upenn.edu/). [Marc Meredith](https://www.sas.upenn.edu/polisci/people/standing-faculty/marc-meredith) is an associate professor in the [Political Science Department](https://www.sas.upenn.edu/polisci/) in the [School of Arts & Sciences](https://www.sas.upenn.edu/). In September, he will join the [University of Pennsylvania](https://www.upenn.edu/) as a Presidential Distinguished Professor in the [Department of Earth and Environmental Science](https://earth.sas.upenn.edu/) in the [School of Arts & Sciences](https://www.sas.upenn.edu/), with a secondary appointment in the [Annenberg School for Communication](https://www.asc.upenn.edu/). Though certain provisions, like the one limiting insulin price caps to Medicare beneficiaries or another aimed at expanding traditional Medicare coverage to include vision, dental, and hearing didn’t make it into the final bill, Werner says this is the biggest change Americans have seen to health care in some time. Beyond that, the legislation caps out-of-pocket spending at $2,000 annually for beneficiaries of Medicare Part D, “a very big deal for low-income older adults who are living on fixed incomes,” Werner says. “The provisions have the potential to greatly accelerate the clean energy transition and are a primary reason that this bill has the potential to cut U.S. “It is possible that more aggressive climate legislation that further disincentivizes new fossil fuel infrastructure could be passed if Democrats increase their margins in the upcoming midterm elections,” he says. But Mann says these tradeoffs “do not, in themselves, constitute a major impediment to achieving the promised emissions reductions.” To that end, three other Penn experts explain the climate, health care, and tax aspects of the legislation. “A lot of Biden’s original plans were stripped out, probably because there wasn’t the same level of support across the ideological spectrum,” he says.