The House of Representatives is expected to vote on Friday on the Democrats Inflation Reduction Act, after clearing the Senate this past weekend, and with it some big changes to key sectors of the U.S. economy.
The measure, while a shrunken version of President Joe Biden's Build Back Better proposal, would pump billions of dollars into climate and healthcare programs, while levying new taxes on big companies and stock SPX, buybacks to pay for it all.
Here is a look at some of the key provisions of the bill, which passed the Senate on a 51 -- 50 vote, as Vice President Kamala Harris broke a tie. The GOP argued that the measure wouldn't live up to its name as an inflation-fighting measure, and no Republicans voted for it.
The bill includes $369 billion for climate and energy provisions and would speed up the transition from fossil fuels to renewable fuels.
The bill's energy and climate-focused ICLN incentives are peppered with rebates and tax credits that will directly impact households, according to MarketWatch. They address heat pumps, appliance efficiency, solar panels, electric vehicles TSLA, F, and more.
Now read: Here is how the Inflation Reduction Act s rebates and tax credits for heat pumps and solar can lower your energy bill.
Sen. Joe Manchin, a key West Virginia Democrat, said he had secured a side agreement to advance an energy-permitting reform package by the end of September, which could make it easier to build pipelines.
The Senate's advancing the bill on Monday saw an immediate impact on investors as shares of solar, electric vehicle and fuel cell companies rallied.
As a result of the climate bill, fuel cell, EV and solar stocks rally, and Medicare would be able to negotiate the cost of some prescription drugs PJP with pharmaceutical companies under the deal, a provision that has been blasted by the industry, which says the measure would throttle innovation.
The bill caps out-of- pocket drug costs for Americans on Medicare at $2,000 a year beginning in 2025.
The Affordable Care Act subsidies will be extended for three years, sparing millions of Americans.
The Democrats' goal of lowering insulin prices for Medicare is expected to become law. During a lengthy process to amend the bill over the weekend, Republicans blocked a $35 price cap on insulin costs for patients on private insurance.
Barron reports that the bill's 15% minimum tax for large companies that pay little or nothing in income taxes could hit big names like Amazon AMZN and Tesla. The tax would apply to those with an average of $1 billion of adjusted pretax profit in the past three years.
Barron s: Tesla and 9 other companies that would take a hit from a 15% minimum corporate tax.
The bill doesn't raise taxes on middle-class households, Republicans have touted the bill's tax increases will hit working families with higher prices, fewer jobs and lower wages. A 1% tax on stock buybacks is also included in the Inflation Reduction Act. Some analysts, reported by the Wall Street Journal, said that they don't think the tax will hurt companies enthusiasm for repurchases.
The Democrats have dropped a plan to close the so-called carried interest loophole in the face of opposition from Sen. Kyrsten Sinema, an Arizona Democrat. After pressured by Sinema, the party agreed to protect companies owned by the private equity industry from the new minimum tax.