The package invests an estimated $437 billion in climate change prevention and energy security, as well as cost reductions for health insurance and prescription drugs.
Consumers who make clean energy upgrades may qualify for up to $10,000 or more in various tax incentives and rebates.
The bill would impose a 15% corporate minimum tax on corporations that make more than $1 billion in profits.
United States President Joe Biden has signed a “historic” $740bn climate change, healthcare and tax bill (Inflation Reduction Act) into law, asserting it as the “biggest step forward on climate ever”.
The bill also known as “Inflation Reduction Act, includes nearly $370bn in investments toward energy security and climate change mitigation, making it the largest climate investment in American history. The goal is to slash the country’s carbon emissions by roughly 40% by 2030.
In a signing ceremony at the White House on Tuesday, Biden heralded the Inflation Reduction Act for its record investment towards cutting carbon emissions and to encourage a shift away from fossil fuels and reduced the carbon emission in the country.
In a statement Joe Biden said , “The Inflation Reduction Act will position America to meet my climate goals, saving families hundreds of dollars a year on energy costs. And for families that take advantage of clean energy and electric vehicle tax credits – they could see more than twice the savings”
“Today, I signed the Inflation Reduction Act into law. It does so much of what we’ve fought to make happen for years like lowering costs and proving our government can work for working folks” he said.
The House approved the more than $430 billion package with a 220-207 margin on Friday, with all Democrats voting in favor and all Republicans voting against.
This came five days after the legislation narrowly passed the Senate, with Vice President Kamala Harris casting the tie-breaking vote that was split evenly among party lines.
The passage of the Inflation Reduction Act is expected to shift energy consumption in the U.S. away from fossil fuels and toward clean energy alternatives.
This will affect how we power our homes, which cars we drive, the appliances we purchase and much more.
The package is expected to reduce energy bills for every homeowner in America, while also offering financial incentives for consumers who invest in clean energy (think solar panels, electric vehicles and energy efficient home upgrades.
As per the Bill, “Environmental and Climate Justice Block Grants” of $3 billion will be created to address the disproportionate effects of pollution and climate change.
It also has the provision to Create “Neighborhood Access and Equity Grants” ($3 billion) to support neighborhood equity, safety and affordable transportation access. It also aims to reconnect communities that have been divided by infrastructure.
It also earmarked 3 billion dollars for the reducing air pollution at ports by installing zero-emission equipment and technology at ports. Investing in clean heavy-duty vehicles ($1 billion) like school buses, transit buses and garbage trucks.
It will help families served by U.S. Department of Housing and Urban Development (HUD) programs transition to shared community solar power.
The signing of the bill into law on Tuesday, signifying a victory for the Democratic party ahead of midterm polls. It was passed by both the House and Senate along partisan lines.