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
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