What’s In The Inflation Reduction Act Of 2022
This year congress passed House Resolution 5376, the Inflation Reduction Act of 2022, and while the CBO estimates it will have a “negligible effect on inflation” it does enact some programs aimed at reducing consumer prices, lowering prescription drug costs, and incentivizing investment in energy-saving measures.
Here are the major provisions of the bill:
- 15% minimum corporate tax rate: Corporations with an annual income of $1 billion will be taxed at a minimum rate of 15%.
- Funding for the IRS: The IRS will receive $80 billion in additional funding for enforcement (“force” being the operative word). Studies show that no one besides the IRS is happy about this.
- Tax Credits for energy-efficient improvements: The bill contains tax credits for homeowners who make certain home improvements for energy efficiency.
- Subsidy extension for the Affordable Care Act: The current subsidies to lower medical insurance premiums have been extended through 2025.
- Medicare prescription drug price reform: This provision allows Medicare to negotiate the price of some prescription drugs and caps recipients’ out-of-pocket prescription drug costs at $2500, starting in 2025.