WASHINGTON, Aug 13 – The Democrat-led U.S. House of Representatives on Friday approved a $430 billion bill billed because of the most significant climate package in U.S. history, handing President Joe Biden a significant legislative victory before a Nov. 8 session by-elections.
Legislation to combat temperature change and lower ethical drug prices aim to scale back domestic gas emissions. it’ll also allow Medicare to barter lower drug prices for the elderly and make sure that corporations and also the wealthy pay the taxes they owe. Democrats say it’ll help fight inflation by reducing the budget deficit.
The House voted 220-207 to approve the measure, titled the “Inflation Reduction Act,” and send it to Biden to sign into law. The Senate passed the bill Sunday after a marathon, 27-hour session.
Biden said he would sign the bill into law within the week ahead, then the White House will celebrate on Sept. 6 to honor what he said is historic legislation.
“Today the American people won. The special interests lost,” Biden said on Twitter.
Democrats hope the legislation will help them in November’s elections when voters decide the balance of power in Congress before the 2024 presidential election. Republicans are favored to win a majority within the House and will also take hold of the Senate.
“This may be a significant victory for American families,” Pelosi said shortly before the vote, describing the legislation as “a robust cost-cutting package that’s right for the instant, ensuring our families thrive and our planet survives.”
Biden plans to travel around the country promoting the bill, together with a series of other legislative victories, at a time when many citizens have disenchanted him with soaring inflation.
About 1/2 Americans support climate and drug price legislation, including 69% of Democrats and 34% of Republicans, in line with an Aug. 3-4.
Business groups have mixed reactions to the legislation, which offers some companies the prospect of upper tax bills while providing protections for the fuel industry.
Republicans oppose the legislation, warning it’ll kill jobs by raising corporate taxes, further fuel inflation with government spending, and forestall the event of the latest drugs.
“Democrats, quite the other majority in history, are dependent on spending other people’s money, no matter what we as a rustic can afford,” House Republican Leader Kevin McCarthy said during a speech.
The draft law was quite 18 months in the making. It represents the ultimate version of Biden’s original sweeping Build Back Better plan, which had to be scaled back in the face of opposition from Republicans and key lawmakers in his party.
Investors looking to pour cash into clean energy products can expect a minimum of a decade of federal subsidies through long-term wind and solar tax credits and new energy storage, biogas, and hydrogen credits. Developers who use US-made equipment or incorporate poorer areas will have additional support.
But the bill doesn’t leave America’s fuel industry move into the cold. Some provisions allow the federal to permit new wind and alternative energy development on federal land providing it also auctions rights to extract oil and fossil fuel.
Fossil fuel protection disappointed progressives but was no obstacle to support for Democrats.
“We don’t support the expansion of fuel leasing,” said Rep. Pramila Jayapal, who leads the Congressional Progressive Caucus. “But critically … independent analyzes show that their impact is far outweighed by the bill’s reduction in carbon pollution.”
A $7,500 reduction intended to encourage American consumers to shop for electric vehicles can’t be used for many EV models on the market, in step with major automakers, which warn that the legislation will jeopardize reaching 2030 US EV adoption targets.
To receive the credit, the vehicles must be assembled in North America, which might make some current electric vehicles ineligible once the law takes effect.
The bill’s main source of revenue could be a 15% minimum corporate tax, which aims to forestall large for-profit companies from using an indoor Revenue Service code to scale back their tax bills to zero.