One year later, the Inflation Reduction Act is transforming America
August 16 marks the one-year anniversary since President Biden signed the Inflation Reduction Act into law, and already America is enjoying big dividends.
The law is best known for its investments in clean energy. Here are some highlights of the bill.
Ten years of tax credits to make homes energy efficient and run on clean energy, making heat pumps, rooftop solar, electric HVAC and water heaters more affordable
Tax credits of $7,500 for a new electric vehicle or $4,000 for a used electric vehicle
$9 billion for home efficiency programs, focused on low-income consumers, to electrify home appliances and for energy efficient retrofits
$1 billion grant program to make affordable housing more energy efficient
$60 billion to boost clean manufacturing in the United States.
A year later, the accomplishments are noteworthy.
The IRA is estimated to have created over 170,000 new jobs and 272 new clean energy projects. Over the next 10 years, it is estimated that the IRA will create 9 million well-paying jobs.
Makers of battery components, wind and solar equipment, and electric vehicles have announced tens of billions of dollars of new investments.
According to an April 2023 analysis by Goldman Sachs, the now estimated $1.2 trillion in federal incentives may encourage up to $3 trillion in private investment over the next decade, resulting in millions of new, well-paying jobs.
Among other provisions in the IRA, seniors will find reductions in their healthcare bills.
Medicare-enrolled older adults have better financial protection by limiting out-of-pocket costs for most insulin products to $35 per month as of January 2023
The IRA expands the low-income subsidy for Part D coverage to 150 percent of the federal poverty level in 2024
The IRA sets a new out-of-pocket limit on annual drug spending beginning in 2025.
The law also prevents egregious price hikes by forcing drug companies to pay back price increases in excess of inflation.
Democrats have much to be proud of for their role in helping America make a start at combatting climate change and for jump-starting the economy. Inflation has declined from 9.06% to 2.97%, and the economy grew by 2.4% in the second quarter of this year.
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