Senate Passes Inflation Reduction Act of 2022
- By: Shannon Davison
- On: 08/07/2022 16:36:28
- In: Legislative Bulletins
The IRA is a smaller, more scaled back version of the Build Back Better that extends subsidies for Affordable Care Act (ACA) premiums, expands clean energy tax credits, and increases taxes on corporations and investment companies.
The IRA is expected to raise a total of $752.5 billion in new revenue from the following:
- Introduction of a 15% Corporate Minimum Tax rate;
- 1% Excise Tax on stock buybacks;
- Efficiencies through government-negotiated drug prices; and,
- Internal Revenue Service (IRS) enhanced enforcement.
The IRA's $472.6 billion in spending will be broken down as follows:
- More than $300 billion in the Energy Security and Climate Change Programs over the next 10 years; and,
- $64 billion in the Affordable Care Act (ACA) Extension.
The bill initially included a provision that would have raised $14 billion by eliminating the so-called “Carried Interest Loophole”, which, to TRALA's delight, was removed from the bill during negotiations. However, TRALA still remains concerned with the provisions related to a 15% Corporate Minimum Tax rate on "book income" and the drastic reduction of carbon emissions by 2030. The bill seeks to incentivize the purchase of electric vehicles (EVs) by providing consumers a tax credit. Specifically, the bill would create a EV tax credit up to thirty percent, but not to exceed $40,000, on the cost of purchasing commercial EVs through 2032.
While this tax credit would be available to lessors, TRALA is concerned about whether its members would be able to fully utilize the credits. TRALA will work with its industry partners to ensure that its membership can reap the full benefits of the tax credits and also allow the credit to be passed on to its lessees if needed.
The bill passed the Senate 51-50 with Vice President Kamala Harris casting the tiebreaking vote and is now headed to the United States House of Representatives for consideration. TRALA anticipates that the House will vote on the bill this Friday.
You may view the IRA in its entirety by clicking here.
If you have any questions or need additional information, please don't hesitate to contact TRALA's Elizabeth Hyers at email@example.com.