The Senate Passes a Historic Bill to Combat Climate Change
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The United States Senate passed a landmark bill on Sunday, August 7, dedicating upwards of $300 billion to climate and clean energy spending. Formally titled the Inflation Reduction Act, the bill is the most significant piece of climate legislation in U.S. history.
The vote passed in a 51-50 vote, with Vice President Kamala Harris as the tie-breaker.
Passage of the bill is a big win for President Joe Biden, who entered office with the goal of achieving a 100 percent clean energy economy and net-zero CO2 and greenhouse gas emissions by 2050. By 2030, the administration hopes to cut emissions by nearly 50 percent below levels they were at in 2005.
The Inflation Reduction Act specifically includes tax credits — incentives that allow individuals to subtract a dollar-for-dollar amount from the taxes they owe — for sustainable utilities that make homes more energy-efficient, like electric vehicles and solar panels, per NPR. It also provides tax credits for manufacturers to amp up production on these and other devices, such as wind turbines.
According to The New York Times, energy experts believe that these actions will likely reduce emissions by about 40 percent below 2005 levels, which is roughly 10 percent short of Biden’s goal.
The Inflation Reduction Act also tackles amendments to health care and tax reform, lowering the cost of prescription drugs for seniors and raising taxes for the nation’s wealthiest corporations. In a statement, the President applauded the bill and celebrated the strides it will make to combat climate change in coming years.
“Today, Senate Democrats sided with American families over special interests, voting to lower the cost of prescription drugs, health insurance, and everyday energy costs and reduce the deficit, while making the wealthiest corporations finally pay their fair share,” he said on Sunday, per The White House. “This bill also makes the largest investment ever in combating the existential crisis of climate change.”
“Finally, it pays for all this by establishing a minimum corporate tax so that our richest corporations start to pay their fair share,” he continued. “It does not raise taxes on those making under $400,000 a year – not one cent.”
What happens next?
Before the Inflation Reduction Act lands on President Biden’s desk for signature, it must pass through the House of Representatives. The vote is expected to take place at the end of this week, after the House reconvenes from their August break, according to CNN. It’s expected to pass more easily through the Democrat-controlled House.
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