Inflation Reduction Act information

Inflation Reduction Act of 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.Tooltip Public Law (United States) 117–169 (text) (PDF)
Statutes at Large	136 Stat. 1818
Legislative history
	Introduced in the House as the "Build Back Better Act" (H.R. 5376) by John Yarmuth (D–KY) on September 27, 2021; Committee consideration by House Budget; Passed the House on November 19, 2021 (220–213); Passed the Senate as the "Inflation Reduction Act of 2022" on August 7, 2022 (51–50) with amendment; House agreed to Senate amendment on August 12, 2022 (220–207); Signed into law by President Joe Biden on August 16, 2022;
Major amendments
	Fiscal Responsibility Act of 2023

The Inflation Reduction Act of 2022 (IRA) is a landmark^[1]^[2] United States federal law which aims to curb inflation by possibly reducing the federal government budget 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).^[3] 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.^[4] It was introduced as an amendment to the Build Back Better Act and the legislative text was substituted. All Democrats in the Senate and House voted for the bill while all Republicans voted against it.^[5]^[6]

According to the nonpartisan Congressional Budget Office (CBO) and Joint Committee on Taxation (JCT), the law will raise $738 billion from tax reform and prescription drug reform to lower prices, and authorize $891 billion in total spending – including $783 billion on energy and climate change, and three years of Affordable Care Act subsidies.^[3]^[7]^[8] The law represents the largest investment into addressing climate change in United States history.^[9] It also includes a large expansion and modernization effort for the Internal Revenue Service (IRS).^[10]^[a] According to several independent analyses, the law is projected to reduce 2030 U.S. greenhouse gas emissions to 40% below 2005 levels.^[11]^[12] The projected impact of the bill on inflation is disputed.^[13]^[14]^[15]^[16]

^ 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.
^ Kaufman, Anna (September 23, 2022). "What is the Inflation Reduction Act 2022? Answering your common questions about the bill". USA Today. Archived from the original on March 9, 2023. Retrieved March 9, 2023.
^ ^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.
^ Cite error: The named reference :10 was invoked but never defined (see the help page).
^ Cite error: The named reference :11 was invoked but never defined (see the help page).
^ "CBO Scores IRA with $238 Billion of Deficit Reduction". Committee for a Responsible Federal Budget. September 7, 2022. Retrieved September 21, 2022. Note the original September 7 CBO estimates are $391 billion for climate action, $108 billion for health care, $281 billion from health savings, and $457 billion from tax reform, for a net total of $238 billion in deficit reduction.
^ "Repealing Inflation Reduction Act's Energy Credits Would Raise $663 Billion, JCT Projects". Tax Foundation. June 7, 2023. Retrieved June 12, 2023.
^ 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.
^ Laco, Kelly (August 4, 2022). "Over 230 economists warn Manchin's spending bill will perpetuate inflation". FOXBusiness. Retrieved April 2, 2023.
^ Tankersley, Jim (August 16, 2022). "Biden Signs Expansive Health, Climate and Tax Law". The New York Times. ISSN 0362-4331. Retrieved August 18, 2022.
^ Laco, Kelly (August 4, 2022). "Over 230 economists warn Manchin's spending bill will perpetuate inflation". FOXBusiness. Retrieved April 2, 2023.
^ Betsy Klein (August 2, 2022). "First on CNN: Top economists say Democrats' health care and climate package will put 'downward pressure on inflation'". CNN. Retrieved August 14, 2022.
^ "The Inflation Reduction Act Will Reduce Inflation". Senate Democratic Leadership. August 1, 2022. Retrieved August 5, 2022.
^ rbradley (August 5, 2022). "Economists Letter to the U.S. Congress on the "Inflation Reduction Act of 2022"". Master Resource. Retrieved April 2, 2023.

Cite error: There are <ref group=lower-alpha> tags or {{efn}} templates on this page, but the references will not show without a {{reflist|group=lower-alpha}} template or {{notelist}} template (see the help page).

[1] 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.

[2] Kaufman, Anna (September 23, 2022). "What is the Inflation Reduction Act 2022? Answering your common questions about the bill". USA Today. Archived from the original on March 9, 2023. Retrieved March 9, 2023.

[:0-3] Everett, Burgess (July 27, 2022). "Manchin and Schumer announce deal that includes energy, taxes". Politico. Retrieved July 27, 2022.

[4] Zhou, Li (July 28, 2022). "How Democrats plan to overhaul taxes, climate spending, and health care before the midterms". Vox. Retrieved July 30, 2022.

[:10-5] Cite error: The named reference :10 was invoked but never defined (see the help page).

[:11-6] Cite error: The named reference :11 was invoked but never defined (see the help page).

[:7-7] "CBO Scores IRA with $238 Billion of Deficit Reduction". Committee for a Responsible Federal Budget. September 7, 2022. Retrieved September 21, 2022. Note the original September 7 CBO estimates are $391 billion for climate action, $108 billion for health care, $281 billion from health savings, and $457 billion from tax reform, for a net total of $238 billion in deficit reduction.

[:8-8] "Repealing Inflation Reduction Act's Energy Credits Would Raise $663 Billion, JCT Projects". Tax Foundation. June 7, 2023. Retrieved June 12, 2023.

[9] Nilsen, Ella (July 28, 2022). "Clean energy package would be biggest legislative climate investment in US history". CNN. Retrieved July 31, 2022.

[:4-10] 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.

[12] Laco, Kelly (August 4, 2022). "Over 230 economists warn Manchin's spending bill will perpetuate inflation". FOXBusiness. Retrieved April 2, 2023.

[13] Tankersley, Jim (August 16, 2022). "Biden Signs Expansive Health, Climate and Tax Law". The New York Times. ISSN 0362-4331. Retrieved August 18, 2022.

[14] Laco, Kelly (August 4, 2022). "Over 230 economists warn Manchin's spending bill will perpetuate inflation". FOXBusiness. Retrieved April 2, 2023.

[15] Betsy Klein (August 2, 2022). "First on CNN: Top economists say Democrats' health care and climate package will put 'downward pressure on inflation'". CNN. Retrieved August 14, 2022.

[16] "The Inflation Reduction Act Will Reduce Inflation". Senate Democratic Leadership. August 1, 2022. Retrieved August 5, 2022.

[17] rbradley (August 5, 2022). "Economists Letter to the U.S. Congress on the "Inflation Reduction Act of 2022"". Master Resource. Retrieved April 2, 2023.

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