On August 16, 2022, President Joe Biden signed the Inflation Reduction Act of 2022 into law. The package contains over $430 billion and is expected to reduce the deficit by more than $300 billion over the course of a decade. As with any new piece of legislation, there comes a wave of new questions and considerations. Here’s what you need to know today.
What is in the Inflation Reduction Act?
The Inflation Reduction Act includes a $369 billion investment in climate and energy policies, a 15 percent corporate minimum tax for companies that earn more than $1 billion a year, $300 billion in deficit reduction, and authorizes three years of Affordable Care Act subsidies, as well as prescription drug reform to lower prices. The Act also invests $80 billion in the Internal Revenue Service to fund tax enforcement for the next 10 years.
The Act Supports Infrastructure Ambitions
Earlier this year, the Infrastructure and Investment Jobs Act (IIJA) poured significant investment into national infrastructure with an emphasis on clean energy and green technologies. The Inflation Reduction Act lends support to these efforts, by significantly curbing America’s greenhouse gas emissions and placing the focus on clean energy innovation. Just as the IIJA broadened the traditional view of infrastructure to encompass new green efforts, the Inflation Reduction Act introduces initiatives to push industry in that direction. This shift not only signals all new contractor opportunities but produces multiple considerations that contractors will need to weigh – such as incentives connected with clean energy vehicles and energy storage.
Forward-Facing Contractor Solutions
At Boon, we understand that the government contracting space exists within a constantly shifting landscape. New legislation is introduced, markets change, and the ebb and flow of opportunities and challenges define the contractor experience. For 40+ years, Boon has innovated adaptable fringe benefit solutions that not only respond to the challenges of the current movement but look ahead to the future. We are the expert in your corner.
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