Inflation Reduction Act includes key tax, climate and health care provisions

The bill is projected to raise more than $700 billion in revenue through tax changes and increased IRS enforcement.

The Inflation Reduction Act (IRA) of 2022 (H.R. 5376) contains provisions focused on climate, energy and health, including new, extended and expanded tax credits. It provides for over $430 billion in climate and energy provisions and extends enhanced Affordable Care Act (ACA) subsidies.

Revenue provisions include a 15% corporate alternative minimum tax (CAMT) on adjusted financial statement income for corporations with profits over $1 billion, a stock buyback tax, increased IRS enforcement funding, and a two-year extension of the limitation on excess business losses.

A Joint Committee on Taxation (JCT) revenue estimate of the bill estimates the following revenue impacts, over 10 years:

• CAMT provision: +$222 billion
• Stock buyback excise tax: +$74 billion
• Two-year extension of limitation on excess business losses of noncorporate taxpayers: +$53 billion
• Reinstatement of Superfund excise tax: +$11.7 billion