Inflation Reduction Act

August 12, 2022 | H.R.5376

The Inflation Reduction Act (IRA) brings down the cost of healthcare for families and makes historic investments in domestic energy production and manufacturing; all paid for by fixing our tax code so the wealthy and biggest corporations pay their fair share and without raising taxes for people who make under $400,000.

HEALTH CARE

The IRA includes important provisions to lower health care costs and the cost of prescription drugs. Overall, the bill will save millions of seniors over $1,200 per year. Specifically, the law:

• Empowers Medicare to negotiate directly for the price of the highest cost prescription drugs beginning in 2026, alleviating the high and rising cost of drugs under our retiree health plans;
• Requires drug manufacturers to pay rebates to Medicare if they raise the cost of their drugs at a rate faster than inflation, ensuring that all our members and retirees are protected from price spikes; 
• Extends the enhanced ACA premium tax credit for three years, which will prevent 13 million people from experiencing an increase in ACA premium; 
• Caps Medicare Part D out of pocket cost at $2,000 per year for prescription drugs; and
• Limits cost for insulin to $35 monthly for Medicare beneficiaries 

DOMESTIC CLEAN ENERGY MANUFACTURING

The IRA makes historic investments to lower energy costs, revitalize U.S. manufacturing, and support and create good union jobs:

• Creates nearly 9 million good jobs in clean energy, clean manufacturing and other sectors through investments to accelerate clean energy deployment and boost clean technology manufacturing;
• Gives up to $7,500 in tax credits for new electric vehicles and $4,000 for used electric vehicles;
• Will save working families an average of over $500 per year on energy costs, using home energy appliance rebates and tax credits to make homes more energy efficient;
• Supports and develops the domestic production of sustainable fuel by providing tax credits to airlines who purchase sustainable fuel to help reduce emissions and lower airfare costs; and
• Provides tax credits for investments in American-manufactured clean energy manufacturing and for the use of American-made equipment for clean energy production. 

TAXES

The IRA makes the tax code fairer by making the rich and corporations pay their fair share:

• Institutes a 15% corporate minimum tax, guaranteeing that large profitable corporations that have evaded taxes for years will pay their fair share;
• Strengthens enforcement against tax dodging by the super-wealthy and big corporations; 
• Imposes a 1% excise tax on corporate stock buybacks, which corporate executives use to enrich themselves at the expense of workers and the company’s long-term success.