Inflation Reduction Act Expected To Become Law

Key Takeaways:

• The Senate voted 51-50 on Aug. 7 to pass the Inflation Reduction Act.
• The legislation is expected to pass the House this week without changes and to be signed by President Biden.
• The legislation raises more than $700 billion from numerous sources, including from novel corporate taxes on adjusted book income and on stock repurchases, through Medicare prescription drug pricing reforms and by strengthening the IRS with $80 billion in new funding.
• The legislation spends more than $400 billion on climate initiatives and healthcare.

The Senate yesterday passed tax, climate and healthcare legislation called the Inflation Reduction Act (IRA2022) along party lines, with Vice President Kamala Harris casting a tie-breaking vote. The House, which allows proxy voting, is expected to vote to approve IRA2022 on Friday and is not expected to make any changes. President Joe Biden is expected to sign the bill soon thereafter.