The Inflation Reduction Act also contains new tax measures aimed at decarbonization . There are tax incentives for green energy projects , including power generation and home and corporate energy efficiency improvements . It also offers a tax rebate for purchasers of electric vehicles , including commercial vehicles , which is a change from past EV tax credits . The Act directs DOE to clear the way for wind energy investment , as well as opening up new oil and gas leases , and provides for DOE to make large loans for energy infrastructure projects . There is also a $ 12 billion spend on EPA greenhouse gas reduction programs , and a measure which would fine oil and gas producers for excess methane emissions .
Besides its greenhouse gas provisions , the bill also contains funding for other environmental priorities , including a sizeable spend on drought mitigation , and smaller amounts for electric buses , sustainable aviation fuels , climate research , coastal conservation , supporting low-emission building materials , and assorted other environmental projects and priorities . The Postal Service would also receive $ 3 billion to move to electric delivery vehicles , with $ 1.29 billion for purchasing zero-emission delivery vehicles and $ 1.71 billion for installing the necessary infrastructure to support the vehicles at USPS facilities .
From a healthcare perspective , the Act would extend through 2025 the temporary expansion of Affordable Care Act ( ACA ) health insurance premium tax credits . This means larger credits for those with household income between 100 % and 400 % of the federal poverty level ( FPL ), as well as expanded eligibility to those above 400 % of the FPL . These popular ACA subsidies were scheduled to expire after 2022 . The Act also directs the Health and Human Services Department to establish a “ Drug Price Negotiation Program ”, which will negotiate a maximum price of high-cost prescription drugs beginning in 2026 for Medicare Part B , which covers medicines administered in a medical setting , and Part D , the program ’ s prescription drug benefit .
All of these things - from the promise to “ make the rich pay their fair share ” to the billions of dollars allotted to environmental policy issues , to the expansion of Obamacare subsidies - are major policy priorities for Democrats . The Inflation Reduction Act , then , is a political victory for a Democrat party that really needed a win before the midterms . Whether it will actually reduce inflation is another matter – economic analysts at University
of Pennsylvania ’ s Penn Wharton Budget Model have suggested that its impact on inflation will actually be slim to none , at best . Apparently , the Inflation Reduction Act “ would reduce annual inflation by around 0.1 percentage points in about five years .” In plain English , the Inflation Reduction Act will not actually reduce inflation at all .
However , at bare minimum , it is a “ win ” for Democrats passed without the more dangerous provisions of the Biden Build Back Better package . CLDA ’ s Government Affairs efforts have focused on keeping the anti-independent contractor PRO Act out of any major legislation passed by this Congress and these efforts have been successful . And with a second “ major ” piece of legislation passed in his first two years , it seems that the window for President Biden to make any more sweeping changes to America ’ s legal structures has likely closed . Now , CLDA must turn its attention to the Administrative state , as we await the details of a proposed rulemaking about employee
classification from the Department of Labor .
The DOL ’ s new IC rule is now under review at the Office of Management and Budget and has been at this
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