August 2022
In the largest investment in energy security and climate change to date in the U.S., the Inflation Reduction Act (having passed the Senate) is scheduled for final vote by the House on August 12th before moving to the President for signature.
Overall, the Act will provide more than $370 billion to energy security and climate programs, including:
More than $60 billion to onshore clean energy manufacturing in the U.S.
More than $60 billion in environmental justice priorities to drive investment in disadvantaged communities
$27 billion for a Greenhouse Gas Reduction Fund, or so-called “green bank,” to leverage public/private investments in projects to combat climate change
A path for the U.S. to achieve 40 percent emissions reduction by 2030.
The act is the largest congressional action on climate change, to date, and could likely spur additional funding streams, inclusive of public and private efforts.
The provisions are grouped into the following key areas:
$4 billion
to drought mitigation
$3.1 billion
to distressed farm loans
$2.2 billion
to provide financial assistance to borrowers “determined to have experienced discrimination prior to January 1, 2021 in Department of Agriculture farm lending programs”
Note: Modifications to the initial July 27th bill include key changes to the tax provisions. For more information on the tax provisions of the Inflation Reduction Act, see KPMG TaxNewsFlash, available here.
Inflation Reduction Act: Energy Security & Climate Change Investments
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