Aug. 16 (UPI) — President Joe Biden Wednesday will speak on the one year anniversary of the Inflation Reduction Act, touting the law’s benefits. Biden signed the bill into law Aug. 16, 2022.
The White House said in a statement Wednesday that it is the largest-ever investment in clean energy and climate action.
“The Inflation Reduction Act is a transformative law that is helping the United States meet its climate goals and strengthen energy security, investing in America to create good-paying jobs, reducing energy and health care costs for families, and making the tax code fairer,” the statement said.
Since the law was signed inflation has fallen from 6.3% in August to 4.7% in July, according to the Bureau of Labor Statistics.
The IRA directs an estimated $369 billion toward clean energy initiatives.
After a full year the White House said the law is already having a real impact on American workers and families, creating an estimated 170,000 clean energy jobs according to estimates.
The White House estimates that the law will create more than 1.5 million additional jobs over ten years.
Department of Energy estimates say that the IRA along with the Bipartisan Infrastructure Law will cut U.S. greenhouse emissions by up to 41 percent below 2005 levels by 2030
Private companies have also announced over $110 billion in clean energy manufacturing investments within the last year alone.
“The Inflation Reduction Act includes the largest investment in rural electrification since the New Deal-nearly $11 billion for rural electric co-ops,” the White House statement said. “The Department of Agriculture has also made available more than $1.3 billion in additional funding from the Inflation Reduction Act to provide agricultural producers and small rural businesses with the financing and funding they need to invest in clean energy and make energy efficiency improvements.”
One impact it has on inflation, according to the White House, is cutting electricity and gas prices.The IRA and infrastructure law together will cut electricity rates by an estimated 9% while lowering gas prices by as much as 13% by 2030, according to the Department of Energy.
Those savings are achieved by things like tax credits that allow companies like Florida Light and Power to refund its 5.8 million customers an estimated $400 million.
The White House said using those tax credits, Minnesota’s Xcel estimated it could lead to $1.4 billion in consumer savings through 2034.
The law includes tax credits for families who make energy efficiency improvements – a total of $1200 per year in tax credits for households.
The law also includes cost-lowering for prescription drugs, giving Medicare negotiating power on drug prices, starting with ten drugs. It caps insulin costs at $35 for Medicare beneficiaries and gives all recommended vaccines for free to seniors on Medicare and adults with Medicaid coverage.
The IRA raises $300 billion in tax revenue over ten years by requiring large corporations to pay a 15% minimum tax on their profits and by enacting a 1% tax on stock buybacks and redemptions.
