Inflation Reduction Act: Difference between revisions
Undid revision 1119427573 by Springee (talk) Read more carefully, The page calls them a conservative thinktank. "Fiscal conservative" is not what's meant by conservatives discussing fiscal policy, it is a defined meaning. If you think their article page is incorrect, you will need to engage there and see whether you can generate consensus. Use the talk page in either article. Knee-jerk reverts accomplish nothing. |
|||
Line 82: | Line 82: | ||
Modeling from the nonpartisan Energy Innovation group, a firm that provides research on energy policy, has found that this bill would lead to the creation of 1.4 million to 1.5 million additional jobs and increase the GDP 0.84–0.88% by 2030.<ref>{{Cite web |title=Climate change bill would cut U.S. air pollution deaths by up to 3,900 per year, study finds |url=https://news.yahoo.com/climate-change-bill-would-cut-us-air-pollution-deaths-by-up-to-3900-per-year-study-finds-191755579.html |access-date=2022-08-31 |website=news.yahoo.com |language=en-US}}</ref> |
Modeling from the nonpartisan Energy Innovation group, a firm that provides research on energy policy, has found that this bill would lead to the creation of 1.4 million to 1.5 million additional jobs and increase the GDP 0.84–0.88% by 2030.<ref>{{Cite web |title=Climate change bill would cut U.S. air pollution deaths by up to 3,900 per year, study finds |url=https://news.yahoo.com/climate-change-bill-would-cut-us-air-pollution-deaths-by-up-to-3900-per-year-study-finds-191755579.html |access-date=2022-08-31 |website=news.yahoo.com |language=en-US}}</ref> |
||
The [[Tax Foundation]], a |
The [[Tax Foundation]], a [[conservative]] think tank, stated that the bill "may actually worsen inflation by constraining the productive capacity of the economy." It estimated the bill would result in a loss of 29,000 [[full-time equivalent]] jobs and a 0.2% reduction in GDP, while resulting in $324{{nbsp}}billion of additional revenues, which would go towards deficit reduction.<ref>{{cite web |date=August 2, 2022 |title=Inflation Reduction Act: Details & Analysis |url=https://taxfoundation.org/inflation-reduction-act/ |access-date=August 4, 2022 |publisher=[[Tax Foundation]]}}</ref> |
||
=== Energy and climate change === |
=== Energy and climate change === |
Revision as of 14:58, 1 November 2022
![]() | |
Long title | To provide for reconciliation pursuant to title II of S. Con. Res. 14. |
---|---|
Acronyms (colloquial) | IRA |
Enacted by | the 117th United States Congress |
Effective | August 16, 2022 |
Citations | |
Public law | Pub. L. 117–169 (text) (PDF) |
Legislative history | |
|
The Inflation Reduction Act of 2022 (IRA) is a landmark[1] United States federal law which aims to curb inflation by reducing the deficit, lowering prescription drug prices, and investing into domestic energy production while promoting clean energy. It was passed by the 117th United States Congress and signed into law by President Joe Biden on August 16, 2022. It is a budget reconciliation bill sponsored by Senators Chuck Schumer (D-NY) and Joe Manchin (D-WV).[2] The bill was the result of negotiations on the proposed Build Back Better Act, which was reduced and comprehensively reworked from its initial proposal after being opposed by Manchin.[3] It was introduced as an amendment to the Build Back Better Act and the legislative text was substituted.
The law, as passed, will raise $738 billion and authorize $391 billion in spending on energy and climate change, $238 billion in deficit reduction, three years of Affordable Care Act subsidies, prescription drug reform to lower prices, and tax reform.[2][4] The law represents the largest investment into addressing climate change in United States history.[5] It also includes a large expansion and modernization effort for the Internal Revenue Service (IRS).[6] According to several independent analyses, the law is projected to reduce 2030 U.S. greenhouse gas emissions to 40% below 2005 levels.[7] The projected impact of the bill on inflation is disputed.
Background
The Build Back Better Plan was a legislative framework proposed by United States President Joe Biden between 2020 and 2021. Generally viewed as ambitious in size and scope, it sought to make the largest nationwide public investments in social, infrastructural, and environmental programs since the 1930s Great Depression-fighting policies of the New Deal.[8]
The plan was divided into three parts: one of them, The American Rescue Plan, a COVID-19 relief spending bill, was signed into law in March 2021.[9] The other two parts were reworked into different bills over the course of extensive negotiations within and among Congressional entities. The American Jobs Plan (AJP) was a proposal to address long-neglected infrastructure needs and reduce America's contributions to climate change's destructive effects;[10] the American Families Plan (AFP) was a proposal to fund a variety of social policy initiatives, some of which (e.g. paid family leave) had never before been enacted nationally in the U.S.[11]
The Build Back Better Act was a bill introduced in the 117th Congress to fulfill aspects of the Build Back Better Plan. It was spun off from the American Jobs Plan, alongside the Infrastructure Investment and Jobs Act, as a $3.5 trillion Democratic reconciliation package that included provisions related to climate change and social policy. Following negotiations, the price was lowered to approximately $2.2 trillion. The bill was passed 220–213 by the House of Representatives on November 19, 2021.
In December 2021, amidst of negotiations and parliamentary procedures, Senator Joe Manchin publicly pulled his support from the bill for its cost and for envisioning a too aggressive transition to clean energy,[12] then subsequently retracted support for his own compromise legislation. This effectively killed the bill as it needs 50 senators to pass via reconciliation, and all 50 Republican senators opposed it. Continued negotiations between Manchin and Senate Majority Leader Chuck Schumer over the course of months eventually resulted in the $737 billion Inflation Reduction Act of 2022.[13]
The sudden deal on the Inflation Reduction Act, which was negotiated in secret and announced on July 27, 2022, was widely regarded as a 'shocker' as Democrats had voiced that there was little hope for a revival of many of their priorities in addition to Manchin himself being rather pessimistic on the prospect in public.[14]
As the revised bill made its way through the chambers of Congress, the new reality of Biden unexpectedly having a clear path to enacting substantial portions of his domestic agenda into law led to a wide reevaluation of the success of the Biden presidency thus far and is expected to give the President and his party a boost while campaigning for the upcoming 2022 Midterm elections.[15][16][17]
Legislative history
![](http://upload.wikimedia.org/wikipedia/commons/thumb/3/35/P20220816CS-0389_%2852386878143%29.jpg/220px-P20220816CS-0389_%2852386878143%29.jpg)
The Build Back Better Act, which passed the House on September 27, 2021, was used by the Senate as the legislative vehicle for this legislation. On August 6, 2022 Senate Majority Leader Chuck Schumer proposed an amendment which would replace the text of the previously passed bill with the text of the Inflation Reduction Act of 2022. This substitute amendment was later adopted.[18]
On August 7, 2022, following the vote-a-rama, an unlimited marathon voting session on amendments, that lasted nearly 16 hours, the Senate passed the bill (as amended) on a 51–50 vote, with all Democrats voting in favor, all Republicans opposed, and Vice President Kamala Harris breaking the tie.[19] On August 12, 2022, the bill was passed by the House on a 220–207 vote, with all Democrats voting in favor and all Republicans voting against it.[20] On August 16, 2022, the bill was signed into law by President Joe Biden.[21]
Provisions
Over a period of 10 years, the law is estimated to raise revenue from:[22][23][24]
- Prescription drug price reform to lower prices, including Medicare negotiation of drug prices for certain drugs (starting at 10 by 2026, more than 20 by 2029) and rebates from drug makers who price gouge – $281 billion[4][25][26][27]
- Imposing a selective 15% corporate minimum tax rate for companies with higher than $1 billion of annual financial statement income – $222 billion
- Increased tax enforcement – $181 billion[4][28]
- Imposing a 1% excise tax on stock buybacks – $74 billion
- 2-year extension of the limitation on excess business losses - $53 billion[4]
In the same time period, it would spend this revenue on:[22][29]
- Addressing domestic energy security and climate change, including funding for drought resiliency in western states – $391 billion
- Deficit reduction – $238 billion[4]
- Continuing for three more years the expansion of Affordable Care Act subsidies originally expanded under the American Rescue Plan Act of 2021 – $64 billion
- Increased funding for the IRS for modernization and increased tax enforcement – $80 billion[28][30]
$270 billion of the law's climate action investments are embedded in the federal tax code.[31] As part of the overall $158 billion investment into clean energy, the law extended the solar investment tax credit for 10 years[32] and invests $30 billion in nuclear power. It also invests $13 billion in electric vehicle incentives, $14 billion in home energy efficiency upgrades, $22 billion in home energy supply improvements, and $37 billion in advanced manufacturing.[33] $20 billion goes to investments in climate-smart agriculture, more than $5 billion goes to strengthened remediation programs for those affected by discriminatory USDA lending practices, $5 billion goes to forest protection and urban heat island reductions, and nearly $3 billion goes to coastal habitat protection.[34][35]
The law contains provisions that cap insulin costs at $35/month and will cap out-of-pocket drug costs at $2,000 for people on Medicare, among other provisions.[22][25][26][27]
Several provisions in the initial deal between Schumer and Manchin were changed after negotiations with Senator Sinema: a provision narrowing the carried interest loophole was dropped, a 1% excise tax on stock buybacks was added, manufacturing exceptions were added to the corporate minimum tax, and funding for drought relief for western states was added.[36][37][38]
Impact
Economic
The nonpartisan Congressional Budget Office estimated that the bill would have no statistically significant effect on inflation.[39] The Penn Wharton Budget Model also estimated that the bill would have no statistically significant effect on inflation.[40]
The nonpartisan Committee for a Responsible Federal Budget analyzed the bill and concluded that the "deficit reduction, along with other elements of the bill, is likely to reduce inflationary pressures and thus reduce the risk of a possible recession."[41] It further estimates that the bill would reduce the federal deficit by $1.9 trillion over a 20-year period. This figure includes the resulting savings on interest payments.[42]
Modeling from the nonpartisan Energy Innovation group, a firm that provides research on energy policy, has found that this bill would lead to the creation of 1.4 million to 1.5 million additional jobs and increase the GDP 0.84–0.88% by 2030.[43]
The Tax Foundation, a conservative think tank, stated that the bill "may actually worsen inflation by constraining the productive capacity of the economy." It estimated the bill would result in a loss of 29,000 full-time equivalent jobs and a 0.2% reduction in GDP, while resulting in $324 billion of additional revenues, which would go towards deficit reduction.[44]
Energy and climate change
The Inflation Reduction Act is the largest piece of federal legislation ever to address climate change.[45] It will invest $391 billion in provisions relating to energy security and climate change.[4] This includes $270 billion in tax incentives, [31] and $27 billion for a green bank created by amending the Clean Air Act.[46][47][48] The summary provided by Senate Democrats identifies primary goals as driving down consumer energy costs, increasing energy security, and reducing greenhouse gas emissions.
The largest allocation areas are: $128 billion for renewable energy and grid energy storage, $30 billion for nuclear power, $13 billion for electric vehicle incentives, $14 billion for home energy efficiency upgrades, $22 billion for home energy supply improvements, and $37 billion for advanced manufacturing.[33] An assortment of additional measures includes $32 billion for investments in rural economies, racial justice in farming, forestlands and coastal habitats, $3 billion in tax incentives for installing carbon capture and storage at existing power plants, $3 billion to electrify the USPS fleet, $3 billion to reconnect neighborhoods harmed by infrastructure potentially via freeway removal, investments in sustainable aviation fuel, grants for high voltage electric power transmission and decarbonization of port equipment, garbage trucks, school buses and local government fleets, purchases of rural electric cooperative debt, and requirements that the government reduce embedded emissions in its procurement process.[34][33][35][49]
The bill aims to decrease residential energy costs by focusing on improvements to home energy efficiency. Measures include $9 billion in home energy rebate programs that focus on improving access to energy efficient technologies, and 10 years of consumer tax credits for the use of heat pumps, rooftop solar, and high-efficiency electric heating, ventilation, air conditioning and water heating. The bill extends the $7,500 tax credit for the purchase of new electric vehicles while also providing a $4,000 tax credit toward the purchase of used electric vehicles, in an effort to increase low- and middle-income access to this technology.[50] This is projected to lead to an average of $500 in savings on energy spending for every family that receives the maximal benefit of these incentives.[51] The bill includes a 30% tax credit ($1,200 to $2,000 per year) and different types of rebates (reaching $14,000) for homeowners who will increase the energy efficiency of their house. In some cases, all upgrade expenses will be returned.[52]
The bill allocates $3 billion for helping disadvantaged communities with transportation matters, including reconnecting communities separated by transport infrastructure, assuring safe and affordable transportation "and community engagement activities."[50] This should improve transit-oriented development.[53] Projects improving connectivity and walkability in these neighborhoods can get grants reaching 80%-100% of the overall cost.[54] The bill also supports biking.[55]
There are also funds allocated to national clean energy production. This includes the continuation of the production tax credit ($30 billion) and investment tax credit ($10 billion) toward clean energy manufacturing, including solar power, wind power, and grid energy storage. Some $14 billion of the clean energy package will go to rural areas, and include building biofuel infrastructure.[50][49]
The bill also provides funds toward the decarbonization of the economy in other areas, providing various tax credits and grants and loans toward decarbonizing the industrial and transportation sectors. One $27 billion decarbonization grant and loan program is a green bank established by amending the Clean Air Act, which is expected to generate high rates of return for the government from private sector investments.[46][47][48] The grant package also includes a program to reduce methane emissions from production and transportation of natural gas. The bill also provides for a focus on communities and environmental justice by providing several grants targeting historically marginalized and disadvantaged communities that have been disproportionally impacted by environmental pollution and climate change.[50]
The bill also allocates funds for rural communities, racial and economic justice in farming, marine ecosystems and forestland, including $20 billion to invest in climate-smart agriculture, $5 billion to invest in forest conservation and urban tree planting, $3.1 billion to help farmers with high-risk operations caused by USDA-backed loans, $2.6 billion to protect and restore coastal habitats, and $2.2 billion to redress proven claims from farmers of discrimination by the USDA's lending programs.[50][34][49][35]
The bill should cut the global greenhouse gas emissions by a level similar to "eliminating the annual planet-warming pollution of France and Germany combined" and may help to limit the warming of the planet to 1.5 degrees Celsius - the target of the Paris Agreement.[56][57] With the bill and additional federal and state measures, the USA can fulfill its pledge in the Paris Agreement: 50% greenhouse gas emissions reductions by the year 2030.[58][59]
An assessment by the Rhodium Group, an independent research firm, estimated it would reduce national greenhouse gas emissions 32–42% below 2005 levels by 2030, compared to 24–35% under current policy while reducing household energy costs and improving energy security.[58] Furthermore, Rhodium Group projects that the nuclear provisions in the bill are likely to "keep much, if not all" of the nation's nuclear reactors that are at risk of retiring, estimated to be 22–38% of the fleet, online through the 2030s.[60]
A preliminary analysis by the REPEAT Project of Princeton University estimated that the investments made by the law would reduce net emissions 42% below 2005 levels, compared to 27% under current policies (including the Infrastructure Investment and Jobs Act).[61][62]
The nonpartisan Energy Innovation Group estimated the reduction of greenhouse gas emissions at 37–41% below 2005 levels in 2030, compared to 24% without the bill.[63][64] This estimate of the greenhouse gas emission reduction lines up with the figure provided by the bill's authors which is a 40% reduction in carbon emissions relative to 2005 levels.[65]
Modeling from the nonpartisan research institution Resources for the Future indicates the bill would decrease retail power costs by 5.2–6.7% over a ten-year period, resulting in savings of $170–220 per year for the average U.S. household. The modeling also predicts that the bill would tend to stabilize electricity prices.[66][67] The bill would help foster a tripling in the size of the American solar power industry and provide unprecedented investment security, according to the trade group Solar Energy Industries Association.[68]
In reaction to the Supreme Court case West Virginia v. EPA, which limited the EPA's authority to institute a program such as the Obama-era Clean Power Plan, the IRA also includes language granting the EPA more authority to regulate carbon dioxide and other greenhouse gases, as well as to promote renewable energy.[69]
Taxes and distributional impact
![](http://upload.wikimedia.org/wikipedia/commons/thumb/4/47/20220826_Share_of_unpaid_taxes%2C_by_income_level_-_area_chart%2C_treemap_-_NYTimes_-_Dept_of_Treasury.svg/220px-20220826_Share_of_unpaid_taxes%2C_by_income_level_-_area_chart%2C_treemap_-_NYTimes_-_Dept_of_Treasury.svg.png)
Excerpts from the nonpartisan Joint Committee on Taxation (JCT) indicated that the legislation might lead to increased payments on personal taxes for Americans of all incomes (an increase in $16.7 billion for taxpayers earning less than $200,000 a year, $14.1 billion for taxpayers earning between $200,000 and $500,000, and $23.5 billion for taxpayers earning over $500,000). This calculation was based on the assumption that companies would indirectly pass on parts of the minimum corporate tax to employees, an assumption that was criticized by Steven M. Rosenthal, a senior fellow at the nonpartisan Tax Policy Center (TPC).[71] Economist William G. Gale, who is also co-director of the TPC, comments that it is important to consider that the calculations by the JCT did not take into account the provisions in the bill that would extend premium tax credits for health plans for low- and middle-income taxpayers, provide households with tax credits for making their property more energy-efficient, and lower the price of prescription drugs.[72]
The Tax Policy Center estimated that the bottom 80% tax filers by income would receive a net benefit, if ACA premium tax credits (subsidies) are included. The 80th-99th percentile would incur a small cost (0-0.1% increase in average federal tax rate) while the top 1% would incur a 0.2% increase. The costs mainly are imposed indirectly as corporations facing higher taxes may reduce the wage increases or levels for workers; individual tax rates were not changed.[73]
Treasury Secretary Janet Yellen directed IRS Commissioner Charles Rettig to not use the new funding allocated in the bill to increase the rate of audits of those making less than $400,000 a year above historical levels, but to instead focus on "high-end noncompliance."[74]
The Treasury and Internal Revenue Service published guidance on eligibility for electric vehicle owners to claim tax credits worth between $3,500 - $7,500, including outlining a requirement for the vehicle to have a final assembly in North America. The Department of Energy and the Department of Transportation also published resources identifying vehicles that will likely meet all requirements for tax credit.[75][76] The Department of Energy indicated that their list of eligible vehicles is not a guarantee for credit, and states that the Vehicle Identification Number (VIN) will give full manufacturing details and locations.[77] Those qualified will receive the tax credits, known as the Clean Vehicle Credit, previously called the Qualified Plug-In Electric Drive Motor Vehicle Credit. The US Treasury Department has also stated that owners who purchase eligible vehicles previous to August 16, 2022 but did not possess the vehicle until after that date, also qualify for the Clean Vehicle Credit.[78] However, because of the requirement that qualified EVs must have "at least 40 percent of materials sourced from North America or a US trading partner by 2024" and the batteries cannot contain minerals that "were extracted, processed, or recycled by a foreign entity of concern", most currently available EVs on the market will not qualify for the tax credits.[79][80]
Additional tax credits were presented in the bill for energy efficiency in buildings, expanding current incentives in a tier-based system beginning in 2023.[81] The bill specifies that commercial buildings must update efficiency by 25%, compared to a reference building, to qualify for $0.50 per square foot of tax credit for the first tier, increasing to a maximum of $5.00 per square foot for the final tier. The tax credits also extends to single and multi-family housing, requiring 50% less annual energy consumption compared to similar units.[76] Vincent Barnes, a senior vice president from Alliance to Save Energy in Washington, D.C, stated that these policies were meant to reduce energy costs and demand on the power grid.[82]
Reactions
Senator Joe Manchin (D-WV) issued a statement for his support of the bill.[83] President Joe Biden also stated his support for the proposed bill.[84] On August 4, Senator Kyrsten Sinema (D-AZ) issued a statement indicating that she would support the bill after striking a deal with fellow Democrats to change several tax provisions.[85]
Congressional Republicans have voiced unanimous opposition to the bill, claiming the legislation would do little to combat inflation or exacerbate it. Senate Minority Leader Mitch McConnell (R-KY) denounced the legislation as "reckless spending" and Ranking Member of the Senate Budget Committee Lindsey Graham (R-SC) called it "insanity".
In a letter sent to congressional leadership and touted by Senate Democrats, 126 economists including Robert Rubin, Jack Lew, Jason Furman, Lawrence Summers, Mark Zandi, and Joseph Stiglitz, wrote that the bill is more than fully paid for, lowers prices for consumers and will lower inflation.[86][87]
In a letter sent to House and Senate leadership, 230 economists wrote that "the legislation will actually contribute to inflation" and "will add to price rises." The economists include "Nobel laureate Vernon Smith, former chairman of the Council of Economic Advisers Kevin Hassett, former director of the Office of Management and Budget Jim Miller, and Robert Heller, president of the Federal Reserve Board from 1986 to 1989. In addition, professors from the University of Chicago, Princeton University, Duke University, the University of Virginia, Columbia University and the University of Notre Dame signed the letter."[88]
Tom Philpott, an agriculture journalist writing in Wired, praised the bill's investments in climate-smart agriculture and remedies for USDA loan discrimination, but heavily criticized Sinema's deletion of the carried interest loophole modification and the lack of provisions to expand funding for the National School Lunch Act and improvements to child nutrition (as expressed in the original Build Back Better Act) and for soil erosion prevention programs (which enhance small-scale carbon farming and encourage a shift away from monoculture-dependent farming for ethanol fuel in the United States).[35]
Public organizations
Darren Woods, the CEO of oil and gas energy giant ExxonMobil, called the bill "a step in the right direction" and endorsed its provisions related to oil and gas.[89] Multiple coal industry groups, including the West Virginia Coal Association, criticized the bill for "[obviating] any need to innovate coal assets" and doing "nothing for coal or coal generation".[90]
Many mainstream environmental organizations supported the bill, such as the Nature Conservancy, the National Wildlife Federation, and American Forests.[91][92] The director of North America policy for the Nature Conservancy, Tom Cors, called the legislation "historic", while Aviva Glaser of the NWF called the infusion of spending "transformative." The Natural Resources Defense Council argued that despite continued acceptance of fossil fuels in the IRA, its climate mitigation policies would outweigh their impact ten times over.[93] Health and environmental justice organizations like Earthjustice have welcomed the law.[94]
However, not all environmental groups expressed unqualified support. Some environmentalists noted that the bill contained more "carrots", or incentives for positive behavior, than "sticks", or new regulations.[91][95] Several groups argued that as the legislation did not seek to eliminate fossil fuels entirely, it was inadequate to meet the threat of climate change. Jean Su, the energy justice program director at the Center for Biological Diversity, called the legislation "a backdoor take-it-or-leave-it deal between a coal baron and Democratic leaders in which any opposition from lawmakers or frontline communities was quashed."[96] The Climate Justice Alliance criticized the IRA, saying that "the strengths of the IRA are outweighed by the bill's weaknesses and threats posed by the expansion of fossil fuels and unproven technologies such as carbon capture and hydrogen generation."[96]
Cycling organizations criticized the bill for removing the incentives for electric bicycles in the original Build Back Better Act, having a better energy-per-incentive ratio and reaching a wider demographic, than for electric cars remaining in the IRA.[97] Sean Jeans-Gail, Vice President of Government Affairs and Policy at the Rail Passengers Association, criticized the IRA saying,"It's a bitter pill in terms of rail and transit, which is the one clearly established, low-carbon emission transportation systems we have going". He also criticized the bill for being car centric.[98]
Representatives from South Korea and the European Union have said that the subsidies for consumers to buy North American assembled electric cars might contravene World Trade Organisation rules, by discriminating against foreign built vehicles, and are considering a challenge.[99][100]
Some members of the trade union United Auto Workers, including the vice president Cindy Estrada, have obliquely commented to The American Prospect that the Inflation Reduction Act's implementation regarding prevailing wage requirements and collective bargaining rights (particularly at startup EV factories) may be weakened, and that if not properly implemented, the Act could be linked to poor hiring practices and working conditions.[101]
See also
- Presidency of Joe Biden
- List of acts of the 117th United States Congress
- Build Back Better Plan
- Build Back Better Act
- Climate change in the United States
- Energy in the United States
- Energy policy of the United States
- List of tie-breaking votes cast by the vice president of the United States
References
- ^ Dennis, Brady (August 14, 2022). "As Congress funds high-tech climate solutions, it also bets on a low-tech one: Nature". The Washington Post. Retrieved August 29, 2022.
- ^ a b Everett, Burgess (July 27, 2022). "Manchin and Schumer announce deal that includes energy, taxes". Politico. Retrieved July 27, 2022.
- ^ Zhou, Li (July 28, 2022). "How Democrats plan to overhaul taxes, climate spending, and health care before the midterms". Vox. Retrieved July 30, 2022.
- ^ a b c d e f "CBO Scores IRA with $238 Billion of Deficit Reduction". Committee for a Responsible Federal Budget. Retrieved September 21, 2022.
- ^ Nilsen, Ella (July 28, 2022). "Clean energy package would be biggest legislative climate investment in US history". CNN. Retrieved July 31, 2022.
- ^ Rappeport, Alan (August 4, 2022). "The I.R.S. says new funding won't mean more audits for middle-income Americans". The New York Times. ISSN 0362-4331. Retrieved August 10, 2022.
- ^ Tankersley, Jim (August 16, 2022). "Biden Signs Expansive Health, Climate and Tax Law". The New York Times. ISSN 0362-4331. Retrieved August 18, 2022.
- ^ "The Build Back Better Framework". The White House. Retrieved November 14, 2021.
- ^ Yarmuth, John A. (March 11, 2021). "H.R.1319 - 117th Congress (2021-2022): American Rescue Plan Act of 2021". Congress.gov. Archived from the original on February 26, 2021. Retrieved April 29, 2021.
- ^ "FACT SHEET: The American Jobs Plan". The White House. March 31, 2021. Retrieved March 31, 2021.
- ^ "Fact Sheet: The American Families Plan". The White House. April 28, 2021. Retrieved April 29, 2021.
- ^ Seipel, Arnie; Hernandez, Joe (December 19, 2021). "Joe Manchin says he won't support President Biden's Build Back Better plan". NPR. Retrieved August 31, 2022.
- ^ CNN, Kevin Liptak, Manu Raju, Ella Nilsen and Alex Rogers. "How secret negotiations revived Joe Biden's agenda and shocked Washington". CNN. Retrieved August 13, 2022.
{{cite web}}
:|last=
has generic name (help)CS1 maint: multiple names: authors list (link) - ^ "Manchin's latest shocker: A $700B deal". POLITICO. Retrieved August 13, 2022.
- ^ "Biden suddenly is piling up wins. Can Dems make it stick?". POLITICO. Retrieved August 13, 2022.
- ^ Montanaro, Domenico (August 12, 2022). "Biden's recent wins could give Democrats a boost heading into the midterms". NPR. Retrieved August 13, 2022.
- ^ Chait, Jonathan (August 12, 2022). "Joe Biden's Best Week Ever". Intelligencer. Retrieved August 13, 2022.
- ^ Yarmuth, John A. (August 8, 2022). "Actions - H.R.5376 - 117th Congress (2021-2022): Inflation Reduction Act of 2022". www.congress.gov. Retrieved August 12, 2022.
- ^ "Senate passes Democrats' sweeping climate, health and tax bill, delivering win for Biden". www.cbsnews.com. Retrieved August 12, 2022.
- ^ "House passes Inflation Reduction Act, sending climate and health bill to Biden". Washington Post. ISSN 0190-8286. Retrieved August 12, 2022.
- ^ CNN, Maegan Vazquez. "Biden signs Inflation Reduction Act into law". CNN. Retrieved August 16, 2022.
{{cite web}}
:|last=
has generic name (help) - ^ a b c "Summary: The Inflation Reduction Act of 2022" (PDF). Senate Democratic Leadership. August 11, 2022. Retrieved August 12, 2022.Estimates from the United States Congressional Joint Committee on Taxation or Congressional Budget Office, depending on the number.
{{cite web}}
: CS1 maint: postscript (link) - ^ CNN, Manu Raju and Ali Zaslav. "Sinema says she will 'move forward' on economic bill, putting Biden's agenda on the cusp of Senate approval". CNN. Retrieved August 5, 2022.
{{cite web}}
:|last=
has generic name (help) - ^ Kimball, Spencer. "Passage of Inflation Reduction Act gives Medicare historic new powers over drug prices". CNBC. Retrieved August 16, 2022.
- ^ a b Sachs, Rachel (August 10, 2022). "Understanding The Democrats' Drug Pricing Package". Health Affairs Forefront. Retrieved October 5, 2022.
- ^ a b Cutler, David M. (September 1, 2022). "Medicare Enters the Pharmaceutical Purchasing Business". JAMA Health Forum. 3 (9). American Medical Association (AMA): e223630. doi:10.1001/jamahealthforum.2022.3630. ISSN 2689-0186.
- ^ a b Murphy, Rachel (August 30, 2022). "How Prescription Drug Negotiations Will Impact Medicare Beneficiaries". Investopedia. Retrieved October 5, 2022.
- ^ a b CFP®, Kate Dore. "With 87,000 new agents, here's who the IRS may target for audits". CNBC. Retrieved August 10, 2022.
- ^ Shivaram, Deepa (August 12, 2022). "Democrats passed a major climate, health and tax bill. Here's what's in it". NPR. Retrieved August 12, 2022.
- ^ "Democrats' $80 billion wager: A bigger IRS will be a better IRS". Washington Post. ISSN 0190-8286. Retrieved August 10, 2022.
- ^ a b Bravender, Robyn (October 5, 2022). "Greenwire: Podesta, IRS get to work on climate law's tax incentives". Politico Pro. Retrieved October 8, 2022.
- ^ Stevens, Pippa (July 28, 2022). "Solar stocks jump as Schumer, Manchin announce climate spending deal". CNBC. Retrieved August 7, 2022.
- ^ a b c Green, Hank (August 12, 2022). The Biggest Climate Bill of Your Life - But What does it DO? (YouTube video). Missoula, Montana: Vlogbrothers. Event occurs at 10 minutes 50 seconds. Retrieved October 6, 2022.
- ^ a b c The Inflation Reduction Act Drives Significant Emissions Reductions and Positions America to Reach Our Climate Goals (PDF) (Report). United States Department of Energy Office of Policy. August 2022.
- ^ a b c d Philpott, Tom (August 20, 2022). "How the Inflation Reduction Act Affects Food and Agriculture". WIRED. Retrieved October 20, 2022.
- ^ Tully-Mcmanus, Katherine (August 5, 2022). "Sinema's tax tweaks". Politico. Retrieved August 5, 2022.
- ^ Cochrane, Emily (August 5, 2022). "Sinema Agrees to Climate and Tax Deal, Clearing the Way for Votes". The New York Times. ISSN 0362-4331. Retrieved August 5, 2022.
- ^ Bolton, Alexander (August 5, 2022). "Sinema announces deal with Schumer on taxes and climate". The Hill. Retrieved August 5, 2022.
- ^ "Inflation Reduction Act: Comparing CBO and PWBM Estimates". Penn Wharton Budget Model. Retrieved August 11, 2022.
- ^ "Senate-Passed Inflation Reduction Act: Estimates of Budgetary and Macroeconomic Effects". Penn Wharton Budget Model. Retrieved August 15, 2022.
- ^ "What's In the Inflation Reduction Act?". Committee for a Responsible Federal Budget. Retrieved July 30, 2022.
- ^ "IRA Saves Almost $2 Trillion Over Two Decades". Committee for a Responsible Federal Budget. August 3, 2022. Retrieved August 4, 2022.
- ^ "Climate change bill would cut U.S. air pollution deaths by up to 3,900 per year, study finds". news.yahoo.com. Retrieved August 31, 2022.
- ^ "Inflation Reduction Act: Details & Analysis". Tax Foundation. August 2, 2022. Retrieved August 4, 2022.
- ^ "Princeton energy and climate experts weigh in on the impact of the Inflation Reduction Act". Princeton University. Retrieved August 27, 2022.
- ^ a b Avery, W. Barron A.; McCarthy, Ryan A.; Lorenzo, Sarah-Jane (August 16, 2022). "Inflation Reduction Act Creates $27B 'Green Bank' Fund for Clean Energy Projects, but False Claims Risks Exist". Morgan Lewis. Retrieved October 22, 2022.
- ^ a b Penny, William; Snow, Ed (August 19, 2022). "Three Ways the Inflation Reduction Act Advances Green Banking". Burr & Forman LLP. Retrieved October 22, 2022.
- ^ a b Cherny, Andrei (August 22, 2022). "Commentary: This little-discussed provision in the Inflation Reduction Act just established the world's largest green lending program". Fortune. Retrieved October 22, 2022.
- ^ a b c Senate Agriculture Committee one-pager, retrieved October 20, 2022
- ^ a b c d e Democrats, Senate (July 27, 2022). "Summary of the Energy Security and Climate Change Investments in the Inflation Reduction Act of 2022" (PDF). Senate Democrats. Retrieved August 22, 2022.
{{cite web}}
: CS1 maint: url-status (link) - ^ House, The White (August 15, 2022). "BY THE NUMBERS: The Inflation Reduction Act". The White House. Retrieved August 23, 2022.
- ^ Iacurci, Greg (August 13, 2022). "Consumers may qualify for up to $10,000 — or more — in climate tax breaks and rebates in the Inflation Reduction Act". CNBC. Retrieved September 8, 2022.
- ^ "FACT SHEET: Inflation Reduction Act Advances Environmental Justice". The White House. Retrieved September 14, 2022.
- ^ "How States and Cities Can Benefit From Climate Investments in the Inflation Reduction Act". Center for American Progress. Retrieved September 14, 2022.
- ^ Banayan, Noa. "What IS in the Inflation Reduction Act for Bikes?". People for Bikes. Retrieved September 14, 2022.
- ^ Rathi, Akshat; A Dlouhy, Jennifer (August 2022). "Bill Gates and the Secret Push to Save Biden's Climate Bill". Bloomberg. Retrieved September 19, 2022.
- ^ Hirji, Zahra; Roston, Eric (August 13, 2022). "US Climate Bill Keeps Hope Alive for Halting Warming at 1.5°C". Bloomberg. Retrieved September 22, 2022.
- ^ a b "A Turning Point for US Climate Progress: Assessing the Climate and Clean Energy Provisions in the Inflation Reduction Act". Rhodium Group. Retrieved August 16, 2022.
- ^ MAHAJAN, MEGAN; ASHMOORE, OLIVIA; RISSMAN, JEFFREY; ORVIS, ROBBIE; GOPAL, ANAND (August 2022). MODELING THE INFLATION REDUCTION ACT USING THE ENERGY POLICY SIMULATOR (PDF). Energy innovation. p. 1. Retrieved September 22, 2022.
- ^ Natter, Ari (August 3, 2022). "Manchin Deal Tosses $30 Billion Lifeline to US Nuclear Reactors". Bloomberg. Retrieved August 4, 2022.
{{cite news}}
: CS1 maint: url-status (link) - ^ Ebbs, Stephanie. "Experts explain how the Inflation Reduction Act helps fight climate change". ABC News. Retrieved August 18, 2022.
- ^ princeton.edu (August 4, 2022). "Preliminary Report: The Climate and Energy Impacts of the Inflation Reduction Act of 2022" (PDF). repeatproject.org. Retrieved August 18, 2022.
- ^ "Modeling The Inflation Reduction Act Using The Energy Policy Simulator". Energy Innovation. Retrieved August 1, 2022.
- ^ Storrow, Benjamin. "How Much Will the Climate Bill Reduce Emissions? It Depends". Scientific American. Retrieved August 18, 2022.
- ^ Newburger, Emma. "Schumer-Manchin reconciliation bill has $369 billion to fight climate change — here are the details". CNBC. Retrieved August 1, 2022.
- ^ "Retail Electricity Rates under the Inflation Reduction Act of 2022". Resources for the Future. Retrieved August 6, 2022.
- ^ "Axios Generate, August 5, 2022". Axios. Retrieved August 5, 2022.
- ^ Stevens, Pippa (September 8, 2022). "Solar installations will triple by 2027 thanks to climate bill, report predicts". CNBC. Retrieved October 29, 2022.
- ^ Friedman, Lisa (August 22, 2022). "Democrats Designed the Climate Law to be a Game Changer. Here's How". The New York Times.
- ^ Lopez, German; Wu, Ashley (August 26, 2022). "Conspiracy Theories / How more funding for the I.R.S. became a political firestorm". The New York Times. Archived from the original on August 26, 2022.
Source: U.S. Department of Treasury; Estimates from 2019
- ^ Diaz, Daniella; Luhby, Tami (July 31, 2022). "Republicans argue Manchin and Schumer's energy, health care deal will raise taxes, citing nonpartisan data". CNN. Retrieved July 31, 2022.
- ^ "Putting JCT's Score of the Inflation Reduction Act Into Context". Tax Policy Center. August 2, 2022. Retrieved August 3, 2022.
- ^ "The Inflation Reduction Act Primarily Impacts Top 1 Percent of Taxpayers". taxpolicycenter.org. August 11, 2022.
- ^ CNN, Kate Sullivan. "Yellen directs IRS not to use new funding to increase chances of audits of Americans making less than $400,000". CNN. Retrieved August 11, 2022.
{{cite web}}
:|last=
has generic name (help) - ^ Davis, Jeffrey. "Treasury Releases Initial Information On Electric Vehicle Tax Credit Under Newly Enacted Inflation Reduction Act - Tax Authorities - United States". Mayer Brown. Retrieved August 21, 2022.
- ^ a b "The $369bn Climate Deal: America's Path To Climate Resilience - Renewables - United States". Morrison Foerster. Retrieved August 21, 2022.
- ^ "Alternative Fuels Data Center: Inflation Reduction Act of 2022". US Department of Energy. Retrieved August 21, 2022.
- ^ Lucero, Kat. "Feds Spell Out EV Tax Breaks Under Inflation Reduction Act - Law360". Law 360. Retrieved August 21, 2022.
- ^ Hawkins, Andrew J. (August 8, 2022). "No electric vehicles on the market today qualify for the new EV tax credit". The Verge. Retrieved August 29, 2022.
- ^ Kaplan, Tim Levin, Juliana. "Most electric cars won't qualify for Democrats' new $7,500 tax credit". Business Insider. Retrieved August 29, 2022.
{{cite web}}
: CS1 maint: multiple names: authors list (link) - ^ August 19, Jack Rogers |; AM, 2022 at 08:08. "Inflation Reduction Act Doubles Tax Credits for Building Retrofits". GlobeSt. Retrieved August 21, 2022.
{{cite web}}
: CS1 maint: numeric names: authors list (link) - ^ Ebeling, Ashlea (August 8, 2022). "Inflation Reduction Act Is Big Win for Serial Green-Home Remodelers". Wall Street Journal. ISSN 0099-9660. Retrieved August 21, 2022.
- ^ Raju, Manu; Luhby, Tami. "Manchin and Schumer announce deal for energy and health care bill". CNN. Retrieved July 27, 2022.
- ^ "Statement from President Biden on Inflation Reduction Act of 2022". The White House. July 27, 2022. Retrieved July 27, 2022.
- ^ "Democrats, Sinema reach deal on new taxes in Inflation Reduction Act". The Washington Post. ISSN 0190-8286. Retrieved August 5, 2022.
- ^ CNN, Betsy Klein. "First on CNN: Top economists say Democrats' health care and climate package will put 'downward pressure on inflation'". CNN. Retrieved August 14, 2022.
{{cite web}}
:|last=
has generic name (help) - ^ "The Inflation Reduction Act Will Reduce Inflation". Senate Democratic Leadership. August 1, 2022. Retrieved August 5, 2022.
- ^ Financial Review, Matthew Cranston. "Why inflation is a hot-button political issue in the US". Financial Review. Retrieved September 26, 2022.
- ^ Crowley, Kevin (July 30, 2022). "Exxon CEO Loves What Manchin Did for Big Oil in $370 Billion Deal". Bloomberg. Retrieved July 30, 2022.
- ^ Alexander, Bolton (August 4, 2022). "Coal industry 'shocked and disheartened' by Manchin climate deal". WFXRtv. The Hill. Retrieved August 9, 2022.
- ^ a b Dennis, Brady (August 14, 2022). "As Congress funds high-tech climate solutions, it also bets on a low-tech one: Nature". The Washington Post. Retrieved August 16, 2022.
- ^ "A "New Day for Climate Action in the United States" as U.S. Congress Passes Historic Clean Energy and Climate Investments". The Nature Conservancy. Retrieved August 17, 2022.
- ^ Plumer, Brad; Friedman, Lisa (July 30, 2022). "Democrats Got a Climate Bill. Joe Manchin Got Drilling, and More". The New York Times. ISSN 0362-4331. Retrieved August 17, 2022.
- ^ Jaffe, Susan (September 3, 2022). "Health organisations welcome US climate crisis law". The Lancet. 400 (10354): 719–720. doi:10.1016/S0140-6736(22)01663-4. ISSN 0140-6736. PMID 36058212.
- ^ Leber, Rebecca (August 16, 2022). "4 underrated parts of the Inflation Reduction Act". Vox. Retrieved August 17, 2022.
- ^ a b Lakhani, Nina (August 9, 2022). "Landmark US climate bill will do more harm than good, groups say". The Guardian. Archived from the original on August 12, 2022. Retrieved August 12, 2022.
- ^ Toll, Micah (August 8, 2022). "The new climate bill abandoned the type of electric vehicle that can make the biggest difference". Electrek. Archived from the original on August 8, 2022.
- ^ Weinberg, Harrison. "'It's so blatant': Transit groups bemoan Dems' car-centric climate deal". Politico. Alex Daugherty. Retrieved August 26, 2022.
- ^ Best, Paul (September 1, 2022). "EU hits US for Inflation Reduction Act electric vehicle tax credit requiring final assembly in North America". FOXBusiness. Retrieved September 3, 2022.
- ^ Palmer, Doug. "USTR shrugs off EU criticism of EV tax credit". POLITICO. Retrieved September 3, 2022.
- ^ Harris, Lee (September 28, 2022). "Industrial Policy Without Industrial Unions". The American Prospect. Retrieved October 5, 2022.
External links
- Inflation Reduction Act of 2022 as enrolled (or in PDF) from Congress.gov
- H.R.5376 - Inflation Reduction Act of 2022 bill information on Congress.gov