Biden Signs $700B Climate and Tax Bill
Abstract
August 16, 2022 Tom Ichniowski and Pam McFarland KEYWORDS climate change bill / Inflation Reduction Act Order Reprints No Comments Federal efforts to counter climate change have received a major boost through a just-enacted $700-billion measure whose centerpiece is a variety of tax incentives and federal funds aimed at reducing greenhouse gas emissions. In remarks before he signed the measure Biden said it includes $369 billion "To take the most aggressive action ever, ever, ever, ever in confronting the climate crisis and strengthening our energy security."Design organizations, such as the American Society of Civil Engineers and American Institute of Architects, cheered the legislation, citing its climate provisions, which affect an array of sectors, including buildings, transportation, renewable energy and carbon capture. The legislation includes extensions of federal tax credits for solar, wind and other renewable energy projects plus an expanded and extended credit for carbon capture, utilization and storage and direct air-capture projects. Other tax provisions will benefit nuclear power plants and green hydrogen projects. Tom Kuhn, president of the Edison Electric Institute, which represents electric utilities, said in a statement, "The robust clean energy tax package included in the IRA also will provide significant long-term benefits to electricity customers across America. The American Petroleum Institute's reaction to the new law was largely negative. API President and CEO Mike Sommers said in a statement that though the measure"takes important steps toward new oil and gas leasing and investments in carbon capture and storage, it falls well short of addressing America's long-term energy needs and further discourages needed investment in oil and gas. North America's Building Trades Unions hailed the provisions, but the Associated Builders and Contractors and Associated General Contractors of America strongly criticized the requirements. The legislation also includes health-care provisions, including language aimed at reducing costs of prescription drugs and to extend subsidies for coverage under the Affordable Care Act..
