Washington—Senator Dianne Feinstein (D-Calif.) today released the following statement in support of the Inflation Reduction Act:
“The Inflation Reduction Act tackles some of the most critical issues facing our nation including climate change, the drought in the West, the cost of health care and rising inflation.
“This is the most significant climate change bill the Senate has ever considered. It will promote domestic clean energy manufacturing to create jobs at home while significantly reducing greenhouse gas pollution, both of which have long been priorities for me.
“The bill includes two Feinstein provisions: It includes $4 billion to respond to historic drought conditions in the West, a boon for California’s cities, businesses and farmers. And it includes a provision making it easier for low- and middle-income Americans to buy electric cars, reducing the demand for gas and lowering carbon emissions.
“This bill will also help reduce health care costs. Most notably, it will extend Affordable Care Act subsidies that help families afford coverage and it will allow Medicare to negotiate prescription drug prices that will benefit millions, two actions I have supported for years.
“Finally, the bill reforms our tax code, ensuring the largest companies pay a minimum 15 percent tax rate. It also boosts IRS funding so the agency can collect billions in unpaid taxes from huge corporations and wealthy tax dodgers, an action for which I have been a strong advocate.
“This bill is a huge win for American families and I’m proud to support it.”
Climate change provisions:
- Tax credits to help reduce emissions: $60 billion clean energy manufacturing tax credit; $30 billion production tax credit for renewable energy, batteries and critical minerals; $10 billion investment tax credit for clean technology manufacturing facilities.
- Includes Senator Feinstein’s Affordable EVs for Working Families Act, which would provide a tax credit of up to $4,000 to individuals who buy a used electric vehicle. The bill also extends the $7,500 tax credit for new vehicles and eliminates the cap for manufactures.
- Lowers home energy costs by providing $9 billion for consumer home energy rebate programs – focused on low-income consumers – for energy efficient retrofits and to electrify home appliances. Also, a $1 billion grant program to make affordable housing more energy efficient and a 10-year consumer tax credit for energy efficiency and clean energy to make heat pumps, rooftop solar, electric HVAC and water heaters more affordable.
- $4 billion in drought funding to compensate farmers who agree to significantly reduce their water usage or fallow their land; for conservation projects like lawn removal and canal lining to help increase available water; and for environmental restoration projects (such as those at Salton Sea) to improve dangerous health conditions caused by climate change.
- $60 billion in environmental justice investments to clean up ports and mitigate the effects of pollution on low-income communities, including $3 billion to support the purchase and installation of zero-emission equipment and technology at ports.
- More than $16 billion to support sustainable agriculture programs, quantify agricultural greenhouse gas emissions and research to reduce methane emissions from cattle.
- $3.4 billion to develop sustainable wood products and energy from biomass made from small-diameter timber left over from forest thinning projects, including projects that reduce the risk of wildfire. This was initially proposed by Senator Feinstein in her Community Wood Facilities Assistance Act.
- $3 billion for the U.S. Postal Service to purchase zero-emission vehicles.
- Extends existing tax credits and grants to support the domestic production of biofuels to 2025, and create new tax credits to support the infrastructure needed for sustainable aviation fuel.
Health care provisions:
- Provides $64 billion to extend Affordable Care Act subsidies for middle class families for three years.
- Gives Medicare the authority to negotiate prescription drug prices, as well as other provisions to lower the cost of drugs for patients.
Tax fairness and deficit provisions:
- A 15 percent minimum tax rate for the roughly 200 largest corporations, many of which pay a significantly lower rate, and some no taxes at all.
- $80 billion to rebuild the IRS, which has faced major budget cuts since 2010 that have resulted in large taxpayer service backlogs and hundreds of billions of dollars in taxes owed by corporations and wealthy individuals that go uncollected each year.
- A 1 percent excise tax on stock buybacks to encourage companies to invest in production and workers instead of shareholder profits.