# Inflation Reduction Act **Type:** Federal law (P.L. 117-169) **Signed:** August 16, 2022 | **Sponsors:** Schumer/Manchin **Vote:** Senate 51-50 (Harris tiebreaker) | House 220-207 (party-line) ## Summary The largest climate investment in U.S. history: **$369 billion** in energy security and climate change provisions, plus $64 billion in ACA healthcare subsidies, funded by a 15% corporate minimum tax, 1% stock buyback excise tax, and enhanced IRS enforcement ($80 billion allocation). ## Key Provisions 1. **Clean energy tax credits:** Production and investment tax credits for wind, solar, nuclear, hydrogen, carbon capture, and clean vehicles 2. **Consumer incentives:** $7,500 EV tax credit (with domestic manufacturing requirements), home energy efficiency rebates 3. **Environmental justice:** $60 billion for disadvantaged communities disproportionately affected by pollution 4. **Healthcare:** Three-year extension of enhanced ACA premium subsidies 5. **Revenue:** 15% corporate minimum tax on companies with $1B+ book income; 1% excise tax on stock buybacks; $80B IRS enforcement funding 6. **Permitting:** Manchin-negotiated provisions for energy project permitting reform ## KB Significance The IRA is the primary target of Trump-era energy policy reversal efforts. Republican attempts to repeal IRA clean energy provisions have been complicated by the fact that the majority of IRA-funded projects are located in **Republican-held districts** — creating a constituency for the law's continuation even among GOP members. The IRS funding provision ($80B) became an immediate political target, with Republicans successfully cutting it in subsequent appropriations. The "87,000 new IRS agents" claim became a major right-wing media narrative. ## See also - [[Insulin and the Politics of Drug Pricing]] — a century-old drug priced as a luxury, and the fight over capping it