Alert 07.29.22
Senate Democrats Announce Breakthrough Bill on Energy, Climate, Tax Reform and Prescription Drug Pricing
The Inflation Reduction Act of 2022 would constitute a historic investment in the U.S. clean energy industry.
Alert
08.12.22
Update: The U.S. House of Representatives has just passed the Inflation Reduction Act, which will now go to President Biden for his signature. This climate legislation—the most significant in U.S. history with its spending package of approximately $370 billion—will supercharge the U.S. economy’s shift to clean energy. President Biden is expected to enthusiastically sign the bill within the next several days
On August 7, 2022, the Senate passed the Inflation Reduction Act of 2022 by a vote of 51 to 50, with Vice President Kamala Harris casting the tie-breaking vote. The bill now heads to the House and is expected to pass that chamber in the coming days.
The legislation provides the largest investment in climate and clean energy initiatives in history and billions in new federal spending for health care priorities. It further makes targeted tax changes and funds tax enforcement to generate revenue and reduce the federal deficit. Pillsbury’s Energy, Public Policy, and Tax teams released an analysis of the major provisions of the bill and its energy specific tax policies when it was initially unveiled late last month.
Through the Senate vote process, several provisions of the original bill were modified or eliminated. Specifically, the Senate-passed legislation:
The landmark investments in climate change and clean energy were not modified during Senate negotiations. Pillsbury’s Energy team has compiled analyses of these provisions, which can be accessed here and here.
The House will come back into session on Friday, August 12, 2022, and House leaders anticipate quickly passing the bill—without amendment—with votes from the chamber’s Democratic majority. Members of Pillsbury’s top-rated Energy, Hydrogen and Public Policy teams are continuing to monitor developments in the legislative and regulatory processes and are available to work with clients to take advantage of new opportunities.