The U.S. Senate on Monday passed the Inflation Reduction Act, which includes major investments to tackle climate change, cut consumer costs, strengthen energy security and create good-paying jobs.
The House of Representatives will consider the legislation on August 12, where it is expected to pass, before it goes to President Joe Biden to sign into law.
Once signed, the Inflation Reduction Act will become the most significant piece of climate legislation enacted in U.S. history.
The Inflation Reduction Act of 2022 makes health insurance and prescription drugs more affordable, invests in addressing climate change, and closes tax loopholes for the rich and large corporations.
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The Inflation Reduction Act invests $369 billion in energy security and addressing climate change, including through the extension and expansion of many existing renewable energy credits and the creation of new tax credits for investments in clean energy technologies or energy production.
It provides consumer tax credits for home energy efficiency improvements and for the purchase of clean vehicles and extends the existing credits for businesses to support investments in energy storage technologies, renewable energy sources, and fuels such as clean hydrogen.
US President Joe Biden said: "This bill also makes the largest investment ever in combatting the existential crisis of climate change.
"It addresses the climate crisis and strengthens our energy security, creating jobs manufacturing solar panels, wind turbines, and electric vehicles in America with American workers.
"It lowers families’ energy costs by hundreds of dollars each year. The House should pass this as soon as possible and I look forward to signing it into law."
Vice President Kamala Harris said: "The climate crisis is here. We will make significant progress in tackling this crisis by providing tax credits and investments in clean energy and transportation while also creating millions of jobs thanks to the Inflation Reduction Act."
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