Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Explainer: When will Americans feel the Inflation Reduction Act's impact?

Economic Indicators Aug 12, 2022 12:52PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. A general view of the U.S. Capitol after United States Vice President Kamala Harris, voted on the Senate floor to break the 50-50 tie to proceed to the Inflation Reduction Act on Capitol Hill in Washington, D.C., U.S. August 6, 2022. REUTERS/Ken Cedeno

(Reuters) - The $430 billion U.S. Inflation Reduction Act, expected to pass in the House of Representative on Friday, aims to lower healthcare costs, promote clean energy and increase corporate taxes at a time when inflation is at its highest in decades.

HEALTHCARE

+ Affordable Care Act premiums: At the end of this year, 13 million Americans would have seen their Affordable Care Act premiums increase, after subsidies expanded in COVID-19 spending bills expired. The bill extends those subsidies until 2024, and President Joe Biden's Democrats say they will save each individual $800.

+ Cap on drug costs for senior citizens: Starting in 2025, the bill caps the amount that millions of senior citizens who receive Medicare will pay in annual drug costs at $2,000.

+ Lower drug prices: These won't be felt in American wallets until 2026. The U.S. government will start negotiating the price charged for the top 10 most-used drugs with pharmaceutical companies in 2025.

ENERGY

+ Electric vehicle credits: Some car buyers may be able to redeem rebates for buying electric vehicles at auto dealerships as soon as this year, including $7,500 for new and $4,000 for used vehicles, depending on income. The U.S. Treasury needs to write regulations on that income verification and the administration needs to specify exactly which vehicles qualify under battery sourcing and critical minerals rules.

+ Homeowner credits: The bill provides $4.28 billion in home rebate programs that will be administered in each state, which have to establish guidelines, such as income limits. The program includes up to $1,750 rebates for heat pump water heaters, up to $8,000 for heat pump systems for heating, ventilation and air conditioning (HVAC), and additional rebates for upgrading electrical panels and improving insulation. The program runs through Sept. 30, 2031.

+ Solar panels and solar battery systems: Homeowners who install residential solar panels or solar battery systems will qualify for a 30% tax credit for installations until Dec. 31, 2034. The credits will be made available after respective states design the rules of the program.

Explainer: When will Americans feel the Inflation Reduction Act's impact?
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
nick cage
nick cage Aug 12, 2022 1:24PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Tax the poor to buy the rich cars and upgrades on their homes. Oh and audit ever restaurant server. If they arnt going to audit the poor why did every Dem vote against putting a rule in the bill protecting low wage workers?
Brad Albright
Brad Albright Aug 12, 2022 1:24PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Here's a tip, buddy: People in the US are wising up to this kind of fact-free alternative reality. We saw that a detachment from reality and a lack of critical thinking almost brought down American Democracy. We are moving on. Facts and sound reasoning are now required. Continue your appeal to the ever shrinking pool of know-nothing kooks if you must, but you are wasting your time. Maybe read some books, start a garden or get some exercise instead. You'll be better for it in the long run. You don't want to be that guy on his death bed mumbling about his glory days when he fooled some people on the Internet.
Steve Sahlfeld
Steve Sahlfeld Aug 12, 2022 1:03PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
the inflation reduction act is better known as the Tax and Stagflation Act.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email