Congress has given final approval to the “Inflation Reduction Act” reconciliation bill, clearing the legislation to be signed by President Joe Biden. The House on August 12 voted 220 to 207 to approve without change a broad package of tax, energy, and healthcare provisions, which was approved 51 to 50 on August 7 by the evenly divided Senate with the tie-breaking vote of Vice President Kamala Harris. White House officials have indicated that the President will sign the legislation in coming days.
Key revenue-raising provisions include:
The bill features $370 billion in spending and tax incentives on energy and climate change provisions. These provisions are intended to spur investments not only by traditional energy companies but also by companies in the transportation, real estate, and manufacturing industries, and include significant enhancements if the projects meet certain wage, domestic content, or location requirements. The bill also reinstates certain Superfund excise taxes, imposes a fee on methane-related emissions, and includes various other excise taxes.
The bill features significant changes to federal prescription drug pricing policies that seek to reduce costs for individuals receiving care through Medicare. The bill also includes a three-year extension of expanded Affordable Care Act (ACA) health care benefits through 2025.