(NovaPoint) The Inflation Reduction Act has been passed by both the House and the Senate. The bill plans to increase revenue by $739 billion through a combination of a 15% corporate minimum tax, a 1% excise tax on stock buybacks, and greater IRS tax enforcement. The greater IRS tax enforcement includes increasing funding to the IRS of $80 billion over ten years to hire 87,000 additional personnel.
The bill will spend $433 billion split between $369 billion on energy security/climate change and $64 billion on a three year extension of the Affordable Care Act. The bill also calls for Medicare to negotiate prescription drug prices.
Highlights of the energy and climate change portions of the bill include investing in solar, wind, hydrogen, nuclear, oil, and gas. Millions of acres of land are planned to be allocated for oil and gas production in order to offer wind and solar leases on Federal land and other locations. The $7500 tax credit for electric vehicle purchases will be extended, but limited to cars priced under $55,000 and trucks and SUVs priced under $80,000. The bill also allocates $60 billion in grants and tax credits to improve air quality monitoring, improve transportation, and invest in clean energy in poor and vulnerable communities.
The bill has created debate on both sides of the aisle and is likely to be one of many debate points heading into the 2022 midterm elections.
