New Climate Change Bill

On August 16th, 2022, US President Joe Biden signed the Inflation Reduction Act, a bill that invests almost $400 billion into fighting climate change. Although the bill focuses on climate change, it also covers health care and tax credits. 

This new bill could have significant effects on how much the US fights climate change. Wired explains that the Inflation Reduction Act aims to cut US greenhouse gas emissions by 40% by 2030. The legislation encourages clean energy, which has caused many organizations to announce new clean energy projects. According to The New York Times, Toyota said they would invest an extra $2.5 billion in a factory in North Carolina to produce batteries for hybrid and fully electric vehicles and First Solar, a large solar panel manufacturer, stated it would invest $1.2 billion to build its fourth factory in the US. The bill also protects almost 2 million acres of national forests and will reduce greenhouse gas emissions by 1 billion metric tons in 2030. The bill heavily invests in and adds to our national fight against climate change.

The new legislation also affects health care in the US. Medicare is now allowed to negotiate prescription drug prices, according to The White House. The White House also states that insulin costs for Medicare beneficiaries with diabetes will be capped at $35 for a month’s supply. This is a significant reduction from the current monthly cost, which, according to WebMD, ranges from $334 to $1,000 per month. The bill will also provide health care to an additional 3 million Americans.  

In addition, the Inflation Reduction Act offers incentives to the general public and to large corporations to invest in clean energy sources. The New York Times explains that the legislation offers incentives to build new solar and wind energy farms where coal mines or plants have closed recently. The bill influences tax credits, which are reductions of a final tax bill. The New York Times states that people who purchase an electric car can receive up to $7,500 in tax credits, but there was a cap on how many electric cars made by each manufacturer were eligible for the tax credit. The new bill gets rid of this cap. The White House states that under this bill, “7.5 million more families will be able install solar on their roofs with a 30% tax credit, saving families $9,000 over the life of the system or at least $300 per year.” This legislation encourages people to switch to clean energy sources, which would be very beneficial for the environment. 

The recently passed Inflation Reduction Act will have monumental effects on society in the United States. It makes fighting climate change affordable for US citizens. It will change the habits of many US citizens to be more environmentally friendly, such as choosing electric cars over gas-powered cars. The bill will also make healthcare more accessible and affordable. Lastly, it encourages people to choose clean energy sources with tax credits. The Inflation Reduction Act may not have immediate effects, but ultimately, it directs us toward a future in which our society and economy is built upon the use of clean energy.