The Inflation Reduction Act was passed by the House on a party-line vote and sent to President Joe Biden to be signed into law. The bill was approved in a 220-207 vote. The Inflation Reduction Act would hasten US emission cuts and set the country on track to reduce greenhouse gas emissions by 40% below 2005 levels by 2030.
The bill includes $369 billion in climate and energy provisions that will change how Americans get energy and shape the country's climate and industrial policies for decades. Its climate measures include billions of dollars to expand wind and solar power production, bring electric vehicles within more Americans' financial reach, and provide $1.5 billion to oil companies to reduce greenhouse gas emissions and penalise them for failing to do so. It would also aid in the development of technologies such as carbon capture and sequestration, hydrogen, and small nuclear reactors. The new and expanded tax credits for low-carbon technologies would also be available for a decade, providing certainty to clean energy developers who have previously experienced incentive lapses.