Biden signs the $750 billion Inflation Reduction Act into law

On Tuesday, President Joe Biden signed the Inflation Reduction Act into law. The ambitious legislation aims to combat climate change, reduce the deficit and impose a minimum tax on corporate profits. This bill is a reduced version of the $1.75 trillion Build Back Better Plan, which was introduced by Biden shortly after his inauguration.  

"With this law, the American people won and the special interests lost," said Biden before signing the law. "For a while, people doubted whether any of that was going to happen, but we are in a season of substance. This administration began amid a dark time in America — as Jim (Jim Clyburn) said, “a once-in-a-century pandemic” — devastating joblessness, clear and present threats to democracy and the rule of law, doubts about America’s future itself. And yet, we’ve not wavered. We’ve not flinched. And we’ve not given in."

The Inflation Reduction Act includes several key initiatives. The new law plans to invest $369 billion into climate and energy spending. The funds will go towards tax credits for families looking to install solar panels and/or buy electric vehicles. It also offers consumer rebates to households that want to install heat pumps or other energy-saving appliances. 

Other climate investments include a $27 billion greenhouse gas reduction fund, which aims to help reach the goal of cutting carbon emissions by 40 percent by 2030. The fund will help local authorities efficiently finance architectural projects and utilize various approaches, including ecosystem restoration and climate-smart agriculture, to lower gas emissions. 

The new legislation also plans to allocate funds for electrification of homes, facilitation of building retrofits, and updated building codes. The American Institute of Architects, which lobbied for many of these climate provisions, called this law “the largest federal investment to combat climate change in history”.

In addition, Biden’s proposal sets the 15 percent minimum tax rate for the largest and most profitable corporations. This measure is estimated to raise $124 billion in savings over the next 10 years. The House passed the Inflation Reduction Act on Friday, August 12, by a 220-207 margin, according to CNBC. All Democrats voted in favor of this bill, and all Republicans voted against it. 

Resources:

“BY THE NUMBERS: The Inflation Reduction Act,” (White House, 2022)

“Ratified Inflation Reduction Act "largest federal investment to combat climate change in history" says AIA,” by Ben Dreith (Dezeen, 2022)

“The Inflation Reduction Act Prioritizes Landscape Architecture Solutions to the Climate Crisis,” by The Dirt Contributor (The Dirt, 2022)

“Biden signs Inflation Reduction Act into law,” by Maegan Vazquez and Donald Judd (CNN, 2022)

“Biden signs Inflation Reduction Act into law, setting 15% minimum corporate tax rate,” by Chelsey Cox (CNBC, 2022)

“House passes massive climate, tax and health bill, sending Biden a core piece of his agenda to sign,” by Kevin Breuninger (CNBC, 2022)

“Architects celebrate climate action and community investment in the Inflation Reduction Act,” (The American Institute of Architects, 2022)