U.S. Bill On Climate Action:
The S. Senate approved a Bill titled the Inflation Reduction Act (IRA) 2022 with a focus on climate, healthcare and tax provisions to address inflation.
- The bill is a scaled-down version of President Biden’s Build Back Better Act (BBBA), which failed to get approval from the Senate.
Climate change provisions:
- Package for the clean energy transition: The Bill marks the largest American investment aimed toward making the U.S. a leader in clean energy.
- It includes packages worth $369 billion for the clean energy transition.
- The Bill provides significant investment in renewable energy through heavy tax credits for wind and solar energy projects and electric vehicles.
- Tax deduction to low and middle-income households: It provides a tax deduction to low and middle-income households to go electric and seeks to lower the energy bills of American households.
- Bolster domestic production: It also aims to bolster the domestic production of heat pumps and critical minerals.
Tax on large and profitable companies to meet the green investment
- Methane fee: It also imposes a fee on methane leaks from oil and gas drilling.
- At the same time, the Bill also aims at more investments in fossil fuels.
- Expand oil and gas drilling: It seeks to expand oil and gas drilling, with the federal government offering land for onshore and offshore drilling with the prerequisite that the entity will develop renewable energy.
- Thus, it handcuffs the expansion of oil and gas with renewable energy development.