Inflation Reduction Act (IRA). This is the nickname given to the new climate and health plan promulgated by Joe Biden on August 16. Presented as the largest investment ever made by the United States in the fight against climate change, it includes a significant envelope of 370 billion dollars intended to reduce greenhouse gas emissions by 40% by 2030.
Its goal ? Disengage consumers and manufacturers from their dependence on fossil fuels. Although the US government has preferred to favor financial incentives, rather than obligations for companies to reduce their emissions. The IInflation Reduction Act therefore does not sign the end of the exploitation of oil and gas, of which the United States is the world’s leading producer.
60 billion to promote renewable energies
In detail, up to 7,500 dollars in tax credits may be granted for the purchase of an electric car for individuals. While 30% of the cost of installing solar panels on the roof of a house can be borne by the State. More than $1.5 billion will be dedicated to strengthening the resilience of forests to the fires that ravage the country each year, in particular by massively planting trees and protecting ancient forests.
60 billion dollars will be spent on the construction of wind turbines, solar panels and electric vehicles. On the business side, the law will also fund the energy efficiency of industrial sites with the aim of reducing the heavy carbon footprint of the sector. Finally, a major step forward, the IRA establishes the first tax on methane which penalizes oil and gas companies exploiting this fossil fuel.
A more comprehensive plan to fight inflation
In addition to the climate, this plan also tackles health and inflation. It will allow Medicare, the health insurance system for people over 65 and people with certain disabilities, to negotiate the prices of prescription drugs.
The agreement also includes a minimum tax of 15% on companies with profits exceeding $1 billion.