Inflation Reduction Act (IRA) of 2022 Summary

On Aug. 16, 2022, President Biden signed into law H.R. 5376 – Inflation Reduction Act (IRA) of 2022. In general, this legislation provides incentives for investment in domestic energy production and manufacturing and the reduction of carbon emissions by roughly 40% by 2030. The bill will also finally allow Medicare to negotiate for prescription drug prices and contains the following key tax provisions.

Individual provisions:

  • Affordable Care Act Subsidies
  • Clean Energy and Efficiency Incentives for Individuals
  • Residential Clean Energy Credit
  • Clean Vehicle Credit
  • Credit for Previously Owned Clean Vehicles
  • Credit for Commercially Owned Vehicles
  • State and Local Tax Limitation (SALT) extended through 2026

Business provisions:

Excess Business Losses (EBLs) of noncorporate taxpayers extended through 2028

Other tax provisions

NATP Inflation Reduction Act (IRA) of 2022 Summary