The Inflation Reduction Act Of 2022

On August 16, 2022, President Biden signed into law the Inflation Reduction Act of 2022 (H.R. 5376) ("IRA"), a 730-page successor to the House-passed Build Back Better Act that failed to become law. By any measure, this is an important bill, one that makes major changes in a number of key policy areas. The Congressional Budget Office predicts that the IRA will result in a net decrease in the deficit, totaling $102 billion over the 2022-2031 period. The Joint Committee on Taxation estimates that it will do so by raising about $324 billion in revenue ($676 billion in gross revenue raisers – $352 billion in tax credits). And while it can be difficult to predict just how a bill of this size and breadth will affect the economy, especially one filled with this many changes to the tax code and other federal laws, what is clear is that the impact could be significant.