On August 7, 2022, the Senate passed the Inflation Reduction Act of 2022 by a vote of 51 to 50, with Vice President Kamala Harris casting the tie-breaking vote. The bill now heads to the House and is expected to pass that chamber in the coming days.

The legislation provides the largest investment in climate and clean energy initiatives in history and billions in new federal spending for health care priorities. It further makes targeted tax changes and funds tax enforcement to generate revenue and reduce the federal deficit. Pillsbury’s Energy, Public Policy, and Tax teams released an analysis of the major provisions of the bill and its energy specific tax policies when it was initially unveiled late last month.

Through the Senate vote process, several provisions of the original bill were modified or eliminated. Specifically, the Senate-passed legislation:

The landmark investments in climate change and clean energy were not modified during Senate negotiations. Pillsbury’s Energy team has compiled analyses of these provisions, which can be accessed here and here.

The House will come back into session on Friday, August 12, 2022, and House leaders anticipate quickly passing the bill—without amendment—with votes from the chamber’s Democratic majority.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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