House Passes the Inflation Reduction Act of 2022
- By: Shannon Davison
- On: 08/12/2022 18:08:26
- In: Legislative Bulletins
The IRA is a reduced version of Build Back Better that would generate billions of dollars through tax increases on corporations and investment companies, expand clean energy tax credits, and extend subsidies for Affordable Care Act (ACA) premiums.
Before the bill passed, the House Committee on Rules considered various tax amendments that were not added to the bill but sought to:
- Reinstate the the SALT cap extension;
- Repeal pass-through loss limit;
- Eliminate electric vehicle (EV) tax credits that would support Chinese manufacturing;
- Reduce high gas prices and inflation; and,
- Remove audits on adjusted gross income of $75,000 or less and quarterly reporting to Congress to certify.
Of concern to TRALA are the provisions in the bill that would create a 15% Corporate Minimum Tax rate on "book income" and significantly lower carbon emissions by 2030. The bill aims to accelerate the purchasing of EVs through a tax credit for consumers. The bill would provide an EV tax credit for commercial vehicles up to thirty percent of the cost, but not more than $40,000. TRALA continues to work with the industry so TRALA members can take full advantage of the tax credits and have the ability to pass the credit onto its lessees.
The bill passed the House 220-207 and is now headed to President Joe Biden's desk for his signature to sign it into law. The IRA would provide funding for fiscal year 2022 which ends on September 30, 2022.
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 firstname.lastname@example.org.