The Inflation Reduction Act 2022

THE INFLATION REDUCTION ACT OF 2022

THE INFLATION REDUCTION ACT OF 2022

On Sunday, August 7, 2022 the Senate – (significantly watered down from the original Build Back Better bill in order to capture the votes of two recalcitrant democrats, Joe Manchin and Krysten Lee Sinema) passed the biggest climate bill the US has ever seen, with Vice President Kamala Harris casting the tie-breaking vote. 

On Friday, August 12, the House followed and sent the bill for signature to President Joe Biden.

On Monday, August 16, 2022 the President signed it, handing the pen to Senator Manchin after completion.

The White House immediately launched Cleanenergy.gov, a website that explains how consumers can take advantage of the clean energy tax credits in the Inflation Reduction Act. The site provides information on the tax credits that are available for rooftop solar panels, heating and cooling systems, energy efficiency upgrades and electric vehicles. Consumers can also sign up to receive updates about additional incentives. 

“About half of the energy costs for the average home come from HVAC units," a senior White House official told reporters, speaking on the condition of anonymity because they were not authorized to comment publicly. “For the first time, we've got a set of rebates and tax credits that will combine to help us reduce those costs by deploying electric heat pumps all across the country.”

The site provides information on the tax credits that are available for rooftop solar panels, heating and cooling systems, energy efficiency upgrades and electric vehicles. Consumers can also sign up to receive updates about incentives that will become available next year. “About half of the energy costs for the average home come from HVAC units," a senior White House official told reporters Tuesday, speaking on the condition of anonymity because they were not authorized to comment publicly. “For the first time, we've got a set of rebates and tax credits that will combine to help us reduce those costs by deploying electric heat pumps all across the country.”

A guidebook was also created, providing an overview of the clean energy, climate mitigation and resilience, agriculture, and conservation-related investments programs in the IRA, including who is eligible to apply for funding and for what activities. It was last updated on 11/28/23. It can be downloaded.

Finally, The Inflation Reduction Act changed a wide range of tax laws and provided funds to improve IRS services and technology to make tax filing easier for you. Lots of useful information here.

The IRA is the most significant legislation to combat climate change in our nation’s history, and one of the largest investments in the American economy in a generation. Already, this investment and the U.S. Department of the Treasury’s implementation of the law has unleashed an investment and manufacturing boom in the United States unlike anything seen in decades—especially in disadvantaged communities.

On the two year anniversary (August 2024) of the Inflation Reduction Act, the White House released a FACT SHEET analyzing its progress. According to the Fact Sheet, since the IRA passed there have been $8.4 billion in tax credits for clean energy upgrades in American homes, 250,000 Americans claiming the IRA’s electric vehicle tax credit, and $900 billion investments in clean energy from companies. Additionally, the majority of clean energy investments are going towards economically disadvantaged areas, making the IRA the largest environmental justice investment in history. 

One of Trump’s first actions after his inauguration was to freeze Inflation Reduction Act and  infrastructure-law funding. The pause throws tens of billions of dollars of lawfully designated clean energy funding into uncertainty. Industry observers had been expecting the Trump administration to halt spending that federal agencies have yet to allocate, but the text of the executive order leaves unclear whether the freeze will also target spending that has already been”obligated,"or legally committed under contract. 

A Biden administration official told reporters on Friday  before the inauguration that $96.7 billion in clean energy grants, or about 84% of grant funding from the Inflation Reduction Act, has been obligated. Analysts say it would be difficult for Trump to undo obligated awards made by the Biden administration.

INFLATION REDUCTION ACT TRACKER

This tracker records steps taken by federal agencies to implement, or rollback implementation of, the climate change-related provisions of the 2022 Inflation Reduction Act (IRA). The tracker is linked to the IRA database, which provides more information about the IRA, and its climate-related provisions.

In the tracker, agency actions are listed in order of date (from newest to oldest) and can be filtered by IRA section, agency, eligible entity, type of action (explanation), and more.

For tips on using the Database and Tracker, visit the About page.

IRATracker.org is a joint project of Columbia Law School’s Sabin Center for Climate Change Law and Environmental Defense Fund.

On July 4, President Trump signed “one big beautiful bill” which guts many IRA provisions. More on CCR’s Budget page.

KEY RESOURCES

Inflation Reduction Act Tracker

01/30/26
IRATracker.org is a joint project of Columbia Law School’s Sabin Center for Climate Change Law and Environmental Defense Fund. The IRA Database, linked below, compiles information about the climate change-related provisions of the 2022 Inflation…

Inflation Reduction Act

07/05/24
Across the economy, the IRA is creating opportunities to build projects, hire workers, and manufacture equipment needed to strengthen domestic supply chains, lower household energy costs while reducing greenhouse gas emissions, and pay good wages…
EPA

Priority Climate Action Plans for States, MSAs, Tribes, and Territories

04/16/24
The following tables include links to the Priority Climate Action Plans (PCAPs) developed for each state, Metropolitan Statistical Area (MSA), Tribe, and territory. Click on the grantee name in the first column to navigate to…

Increased Credit or Deduction Amounts for Satisfying Certain Prevailing Wage and Registered Apprenticeship Requirements

08/30/23
This document contains proposed regulations regarding increased credit or deduction amounts available for taxpayers satisfying prevailing wage and registered

The Inflation Reduction Act: A Snapshot for Business

08/12/23
The Inflation Reduction Act (IRA) positions the US to cut greenhouse gas emissions by up to 42% by 2030, putting the target of 50% below 2005 levels within reach

Inflation Reduction Act Funding for Rural Development

04/06/23
In August, Congress passed the Biden-Harris Administration’s historic legislative package known as the Inflation Reduction Act (IRA) to reduce energy costs for families and create thousands of good-paying jobs for people across rural America. IRA…

Inflation Reduction Act Tracker

04/06/23
IRATracker.org is a joint project of Columbia Law School’s Sabin Center for Climate Change Law and Environmental Defense Fund. The IRA Database, linked below, compiles information about the climate change-related provisions of the 2022 Inflation…

U.S. Greenhouse Gas Emissions Trends and Projections from the Inflation Reduction Act

01/12/23
Millions of discrete sources throughout the United States produce greenhouse gas (GHG) emissions.1 These sources include motor vehicles, electric power plants, industrial facilities, commercial buildings, households, and agricultural activities. Human-related GHG emissions have increased since…

Checklist: How to take advantage of brand-new clean energy tax credits

01/06/23
Whether you need windows, a furnace, a car, or a rooftop solar system, new tax breaks are available through the Inflation Reduction Act to help you save money and go green. The post Checklist: How…

3 ways to tap billions in new money to go green — starting this month

01/02/23
Earlier this year, Congress passed the biggest climate bill in history — cloaked under the name the “Inflation Reduction Act.” But while economists say the bill may not reduce inflation very much, it could do…

With forests in peril, she’s on a mission to save ‘mother trees’

12/27/22
MALCOLM KNAPP RESEARCH FOREST, British Columbia — Suzanne Simard walks into the forest with a churchgoer’s reverence. The soaring canopies of Douglas firs are her cathedral’s ceiling. Shifting branches of cedars, maples and hemlocks filter…

Treasury Announces Information Timeline for Inflation Reduction Act Tax Implementation

12/19/22
Today the U.S. Treasury Department announced a timeline for providing additional information on key tax provisions of the Inflation Reduction Act. The timeline provides clarity to consumers and businesses, that, beginning January 1, 2023, will…

The Inflation Reduction Act—What it Is and What it Means for EV Adoption

11/02/22
The Inflation Reduction Act of 2022 (IRA) will transform the U.S. energy sector through substantial investments that will lead us to roughly 40% emissions reductions by 2030. The historic passage of this legislation represents the…

It’s time to maximize our electric potential

09/13/22
We want to make adoption of this electric future as quick and seamless as possible, so we’ve built a calculator to help make households aware of how much money they’ll get through the incentives available…

Cities & the Inflation Reduction Act

08/22/22
President Biden signed the Inflation Reduction Act (or “IRA”), widely hailed as the most ambitious piece of climate legislation in U.S. history. The bill is sprawling, covering climate and energy topics as diverse as electric…

H.R.5376 – Inflation Reduction Act of 2022

08/22/22
This bill imposes an alternative minimum tax of 15% of the average annual adjusted financial statement income of domestic corporations (excluding Subchapter S corporations, regulated investment companies, and real estate investment trusts) that exceeds $1…

Inflation Reduction Act of 2022

08/22/22
AMENDMENT: Strike all after the enacting clause and insert the following: TITLE I—COMMITTEE ON1 FINANCE TITLE I—COMMITTEE ON FINANCE Subtitle A—Deficit Reduction

Environmental Justice (EJ) Provisions of the 2022 Inflation Reduction Act

08/22/22
This table includes provisions with the potential to provide federal benefits to communities with EJ concerns. Direct benefits, where the statute requires benefits to be implemented in or directed towards low-income, tribal, or overburdened communities,…

For leaders abroad, new U.S. law restores climate credibility

08/19/22
The U.S. climate bill signed into law this week restores the country's credibility as a leading player in U.N. climate negotiations, international officials said.

What the U.S. climate law means for the world

08/19/22
The Inflation Reduction Act is a very big deal for the United States. It’s the biggest climate law in the country’s history. It’s a lot of money, nearly $370 billion, for all kinds of tax…

Biden’s Climate Law Is Ending 40 Years of Hands-Off Government

08/19/22
On Tuesday, President Joe Biden signed the Inflation Reduction Act into law. It is no exaggeration to say that his signature immediately severed the history of climate change in America into two eras. Before the…

Biden’s Signing of Climate Law Kicks Off Marathon of Rulemaking (2)

08/18/22
President Joe Biden’s signing of the Inflation Reduction Act on Tuesday caps nearly two years of efforts to pass sweeping climate legislation. But the real work is just getting started. For federal regulators, the moment…

Modeling The Inflation Reduction Act Using The Energy Policy Simulator

08/18/22
On July 27, 2022, the United States Senate released legislative text for the Inflation Reduction Act (IRA), which includes $369 billion in funding for climate and clean energy provisions. These emissions-reducing provisions run the gamut…

Adding it Up: Groundbreaking Federal Investments into Clean Energy Innovation

08/18/22
In the last year, three pieces of legislation have become law (or are poised to soon) that advance clean energy programs and provide funding to get the job done Total clean energy funding contained in…

Federal study: New climate law to slice carbon pollution 40%

08/18/22
Clean energy incentives in the new spending package signed this week by President Joe Biden will trim America’s emissions of heat-trapping gases by about 1.1 billion tons (1 billion metric tons) by 2030, a new…

Summary of the Energy Security and Climate Change Investments in the Inflation Reduction Act of 2022

08/17/22
Both high energy costs, and the growing impacts of climate change, pose a significant burden to every American. The historic investments included in the Inflation Reduction Act of 2022 will bring down consumer energy costs,…

Alternative Fuels Data Center

08/16/22
The Inflation Reduction Act of 2022 (Public Law 117-169) amends the Qualified Plug-in Electric Drive Motor Vehicle Credit (IRC 30D), now known as the Clean Vehicle Credit, and adds a new requirement for final assembly…

A Detailed Picture of What’s in the Democrats’ Climate and Health Bill

08/16/22
Democrats in Congress have had to scale back their legislative ambitions since last year, but the Inflation Reduction Act, passed by the House on Friday and signed by President Joseph R. Biden Jr. on Tuesday,…

What the Inflation Reduction Act Means for Climate

08/16/22
President Joe Biden has signed the Inflation Reduction Act, a bill that will invest $369 billion in climate solutions and environmental justice. The bill will put us on a path to 40% emissions reduction by…

Alternative Fuels Data Center

08/16/22
The Inflation Reduction Act of 2022 (Public Law 117-169) amends the Qualified Plug-in Electric Drive Motor Vehicle Credit (IRC 30D), now known as the Clean Vehicle Credit, and adds a new requirement for final assembly…

By The Numbers: The Inflation Reduction Act

08/15/22
The Inflation Reduction Act will lower costs for families, combat the climate crisis, reduce the deficit, and finally ask the largest corporations to pay their fair share. President Biden and Congressional Democrats have worked together…

Inflation Reduction Act: Agricultural Conservation and Credit, Renewable Energy, and Forestry

08/10/22
On August 7, 2022, the Senate passed what is often referred to as the Inflation Reduction Act of 2022, a substitute to the House-passed Build Back Better Act (BBBA, H.R. 5376). Both bills are budget…

Senate Democrats pass sweeping climate, health care and tax bill; Here’s what’s in it

08/04/22
After hours of debate and votes on a nearly endless stream of amendments, Senate Democrats passed the Inflation Reduction Act, a sweeping climate change, health care and tax bill that delivers on many of the…

Why Congress Must Pass the Climate Bill

07/29/22
Senate Democrats unveiled a bill on Wednesday, July 27, that provides $369 billion in strategic investment to confront the climate crisis in a way that will strengthen the economy, lower costs for our families, and…

Media Coverage…As It Happened

The Senate Takes Its First Pass at IRA Repeal

By Emily Pontecorvo   06/04/25  

Biden’s Long Game on Climate

By Robinson Meyer   05/24/25  

Tax bill passed by House Republicans would gut Biden-era clean energy tax credits

By Matthew Daly, Alexa St. John And Matthew Brown   05/23/25  

100 Days of Trump 2.0: The Inflation Reduction Act

By Olivia Guarna and Amy Turner   04/29/25  

The IRA Has a Math Problem

By Emily Pontecorvo and Jael Holzman   03/23/25  

Trouble for the Tax Credit Market?

By Matthew Zeitlin   02/13/25  

The Inflation Reduction Act Is About to Be Tested

By Robinson Meyer and Jesse D. Jenkins   11/06/24  

Climate Workers Wanted

By Austyn Gaffney   08/22/24  

The First IRA Tax Credit Data Is In

By Emily Pontecorvo and Robinson Meyer   08/07/24  

The IRA’s New Conventional Wisdom

By Justin Worland   03/28/24  

Clean Energy’s Investment Boom

By Andrew Freedman   03/06/24  

AOC on The Green New Deal’s Anniversary

By The Brian Lehrer Show   02/21/24  

The New Hydrogen Rules Risk Opening the Door to Methane Offsets

By Emily Grubert and Danny Cullenward   02/09/24  

Treasury floats tax lifeboat for struggling offshore wind

By Heather Richards and Brian Dabbs   11/17/23  

A New Law Supercharged Electric Car Manufacturing, but Not Sales

By Jim Tankersley, Ana Swanson, Jack Ewing and Coral Davenport   11/08/23  
npr

Biden’s Climate Moves

By Jeanette Woods and Others   08/27/23  

Stop Giving Big Oil a Carbon Fig Leaf

By Dr. Jonathan Foley   08/17/23  

Biden’s hydrogen bombshell leaves Europe in the dust

By Gabriel Gavin and Ben Lefebvre   07/03/23  

Emissions and energy impacts of the Inflation Reduction Act

By John Bistline , Geoffrey Blanford and Others   06/29/23  

GOP’s newest attack on Biden’s climate law: China

By Kelsey Tamborrino and Josh Siegel   02/14/23  

Scoop: Biden’s EV surprise

By Joann Muller   02/01/23  

Biden’s next climate hurdle: Enticing Americans to buy green

By Chris Megerian, Hannah Fingerhut, and Matthew Daly   01/23/23  

Climate law: What to watch at Interior, FERC and DOE

By Heather Richards and Others   09/12/22  

Sweeping climate bill will push American energy to go green

By Seth Borenstein and Others   08/11/22  

The long road to the climate bill

By Andrew Freedman   08/11/22  

Why the climate bill’s Senate passage matters

By Ben Geman and Andrew Freedman   08/08/22  

New life for climate legislation

By Ben Geman and Others   07/28/22  

No Republicans signed on in the Senate or in the House

Manchin Side-Deal Seeks to Advance Mountain Valley Pipeline

By Ari Natter and Erik Wasson  08/02/22  

The IRA’s Very Specific Impacts on….

Dead EV batteries turn to gold with US incentives

By Nick Carey, Paul Lienert and Victoria Waldersee  07/21/23  
CAP

5 Major Benefits of the Inflation Reduction Act’s Climate Investments

By Trevor Higgins and Sally Hardin  08/18/22  

Ditching Fossil Fuels

By German Lopez  08/12/22  

Historic climate bill to supercharge clean energy industry

By Ben Lefebvre and others  08/07/22  

The climate economy is about to explode

By Robinson Meyer  10/05/22  

The cost of climate action

By Quill Robinson  08/11/22  

What does the IRA mean for agtech?

By Daniel Rath and Lara Bryant  04/10/23  

DeSantis tells Biden: Keep your IRA money

By Jennifer Haberkorn  08/30/23  

United Auto Workers Hold Off on Backing Biden, for Now

By Shane Goldmacher and Coral Davenport  05/03/23  

Why you may choose to lease — rather than buy — your next electric car

By Timothy Puko, Steven Mufson and Maxine Joselow  03/29/23  

Treasury to release EV tax credit guidance next week

By Hannah Northey and Timothy Cama  03/22/23  

Scoop: Biden’s EV surprise

By Joann Muller  02/01/23  

The New Climate Bill Demands All-American EV Batteries

By Aarian Marshall and Others  08/15/22  

Senate climate deal includes NOAA spending boost

By Andrew Freedman  08/03/22