Sweeping climate-focused Inflation Reduction Act was passed by Senate
The Executive Headlines
President Joe Biden’s climate agenda became successful when On Sunday, Senate Democrats passed the Inflation Reduction Act of 2022 in a 51-50 decision that went along party lines and saw Vice President Kamala Harris cast the tie-breaking vote. The infighting took place for more than a year.
How the decision was taken
According to The Washington Post, "The party-line vote was a milestone in a tumultuous journey that began last year when Democrats took control of Congress and the White House with a promise to bring financial relief to ordinary Americans. With a tie breaking vote from Vice President Harris, the 50-50 Senate sent the bill to the House, which aims to approve it and send it to the White House for Biden’s signature later this week.
Dubbed the Inflation Reduction Act of 2022, the package would authorize the biggest burst of spending in U.S. history to tackle global warming — about $370 billion to reduce greenhouse gas emissions to 40 percent below their 2005 levels by the end of this decade. The proposal also would make good on Democrats’ years-old pledge to reduce prescription drug costs for the elderly."
According to Engadget, "If passed by the House, the 755-page bill would authorize the single largest expenditure to combat climate change in the nation’s history. In all, the legislation calls for $370 billion in spending to reduce US greenhouse emissions by approximately 40 percent by the end of this decade."
Effect on EV (Electric Vehicles market)
InsidesEVs "In a nutshell, the US Senate's potential EV tax credit would remain at $7,500, though there would be a smaller credit for people who buy a used EV. The new credit wouldn't be capped, meaning automakers that have had the credit phased out due to sales would be eligible again. The new plan will also have a cap on the price of the EV, as well as the income of the buyer, along with a North American requirement."