Today, Congressman Tim Ryan (OH-13) voted to pass the Inflation Reduction Act of 2022, historic legislation that will fight inflation by paying down the national debt, lowering Ohioans' energy and healthcare costs, and increasing domestic energy production and manufacturing. The legislation now heads to the President's desk to be signed into law.
"I hear every day from Ohioans who are getting hammered by inflation, and it's why I've been fighting tooth and nail in Congress to immediately get relief out the door. The Inflation Reduction Act is a historic opportunity to bring down prices, reform our healthcare system, reduce our deficit and make historic investments in domestic energy production and manufacturing that will set our nation on the path to dominate the clean energy industry--all while not raising a penny in taxes on middle class Americans," said Congressman Ryan.
Ryan continued, "Best of all, this bill positions us to rebuild the great American middle class and finally create a level playing field for our workers to outcompete China. By lowering prescription drug and healthcare costs, creating good-paying jobs, and a securing a brighter future for our kids, this legislation is a major win for working people in Ohio and across the country. I look forward to seeing it signed into law."
Video of Congressman Ryan speaking about the historic Inflation Reduction Act in a press conference with Ohio media outlets can be viewed and downloaded here
. Video of Congressman Ryan speaking on the House floor about the legislation can be viewed and downloaded here.
The Inflation Reduction Act will:
Lower the Cost of Prescription Drugs
Allows Medicare to Negotiate Lower Prices for High-Cost Drugs: For the first time, Medicare will be able to negotiate lower prices for 10 high-cost drugs starting in 2026. This will go up to 20 drugs by 2029 and will save more than $200 billion over 10 years.
$2,000 a Year Cap on Out-of-Pocket Costs: Caps out-of-pocket prescription drug costs, starting in 2025, at $2,000 a year for seniors on Medicare and penalizes drug companies for outrageous price hikes.
$35 Monthly Cap on Insulin: Caps the cost of insulin at $35 a month for seniors on Medicare, starting in 2025.
Expand and Improve Healthcare Coverage
Three-year Extension of Enhanced Financial Assistance: Extends provisions in the American Rescue Plan (ARP) to help people enrolled in ACA plans afford premiums for the next three years and expands eligibility to allow more middle-class Americans to receive help with premiums.
Subsidies for Low-Income Seniors: Expands eligibility for Medicare's Low-Income Subsidy under Medicare Part D and provides all qualifying beneficiaries the full subsidy.
Stabilizes Part D Premiums: Limits premium increases in Medicare Part D to no more than 6% per year from 2024-2029.
Provide Support for Our Farmers
$20 Billion for Climate Smart Agriculture: Major increases in funding for existing conservation programs and programs that incentivize and provide technical assistance for sustainable farming practices.
$1.9 Billion for Rural Energy for America Program: Grants to cover up to 50% of activity costs to farmers and small businesses to make energy efficiency improvements.
$300 Million for Climate-Friendly Farming: Funds to study and maximize the carbon sequestration and reduction effects of certain farming practices.
Accelerate the Transition to Clean Energy
$9 Billion for the Consumer Home Energy Program: Revives and extends a tax credit for energy efficiency upgrades in your home, including new doors, windows, and energy efficient appliances.
$9.7 Billion in Assistance for Rural Electric Co-Ops: Loans, loan modifications, and grants for new renewable energy purchase and deployment, carbon capture and storage.
Production Tax Credit Extension for Clean Energy: Extends for five years a tax credit for electricity produced from qualifying sources, including wind, biomass, organic waste (RNG), geothermal, and hydropower.
Investing in New Solar: Revives the PTC for new solar energy facilities that commence construction before 2025.
Invest in Domestic Electric Vehicle Industry
Production Tax Credits for Advanced Manufacturing: Provides tax credits for the production of battery cells, battery modules, and applicable critical materials
Advanced Energy Project Tax Credit: A $10 billion investment fund for the construction of clean technology manufacturing facilities, including renewable energy, energy storage, grid modernization, and electric vehicles. This funding also includes refining and recycling of critical materials.
New Tax Credit for Medium & Heavy Duty Electric Vehicles: Starting in 2024, the purchase of an electric medium and heavy duty vehicle such as commercial trucks, semi-trucks, and tractors -- like the ones being built in Lordstown -- will qualify for a new purchase tax credit.
Close Tax Loopholes for the Biggest Corporations
Establishes a 15% Minimum Tax for Billion-Dollar Companies: Hundreds of corporations use tax loopholes to avoid paying their fair share, or in some cases, any taxes at all. The IRA imposes a 15% minimum tax on corporations with more than $1 billion in annual profit that currently pay below that rate.
Imposes a 1% Fee on Stock Buybacks by Publicly-Traded Companies.