Act Now: Save Money with the Inflation Reduction Act Before Trump Takes Charge
Saturday, Nov 16, 2024 2:59 pm ET
6min read The Inflation Reduction Act (IRA), signed into law by President Biden in 2022, offers numerous opportunities for individuals and businesses to save money while promoting a more sustainable future. As the political landscape shifts, it's crucial to take advantage of these provisions before potential changes under a future Trump administration. This article explores how to capitalize on the IRA's benefits before time runs out.
1. **Clean Energy and Energy Efficiency Upgrades**: The IRA extends and enhances tax credits for residential energy-efficient improvements, including solar panels, wind turbines, and energy-efficient appliances. By upgrading to clean energy technologies, homeowners can significantly reduce their energy bills and save money in the long run.
2. **Electric Vehicles (EVs)**: The IRA provides a $7,500 tax credit for purchasing new EVs and $4,000 for used EVs. This credit is designed to make EVs more affordable, encouraging consumers to switch from gas-powered vehicles and save on fuel costs in the long run. Additionally, the IRA allocates funds for EV charging infrastructure, making it easier for consumers to adopt EVs.
3. **Prescription Drug Pricing Reforms**: The IRA allows Medicare to negotiate prices directly with drug manufacturers for a select group of drugs, starting with 10 in 2026 and expanding to 20 by 2029. This negotiation power is expected to lower out-of-pocket costs for millions of seniors and disabled individuals enrolled in Medicare Part D. Additionally, the IRA caps monthly insulin costs at $35 for Medicare beneficiaries, effective in 2023.
4. **Affordable Care Act (ACA) Subsidies**: The IRA enhances ACA subsidies, enabling more Americans to access affordable health insurance. By extending subsidies to individuals with incomes up to 400% of the federal poverty level, the IRA ensures that no one pays more than 8.5% of their income for coverage. This expansion results in an average savings of $800 per year for millions of Americans, with over 80% of consumers able to find health insurance for $10 or less a month.
5. **IRS Strengthening and Tax Enforcement**: The IRA includes provisions to strengthen the IRS, ensuring that wealthy individuals and corporations pay their fair share of taxes. By investing in IRS technology and customer service, the IRA aims to improve tax enforcement and close the tax gap. This includes hiring more auditors to focus on high-income individuals and large corporations, as well as investing in technology to enhance the IRS's ability to detect and address tax evasion.
To maximize savings and take advantage of the IRA's benefits, individuals should act promptly. As the political landscape shifts, there is a risk that these provisions may change or be repealed under a future Trump administration. By taking action now, individuals can secure long-term savings and contribute to a more sustainable future.
The IRA offers a unique opportunity for individuals and businesses to save money while promoting clean energy and energy efficiency. By taking advantage of these provisions, consumers can reduce their energy bills, access affordable health insurance, and benefit from prescription drug pricing reforms. As the political landscape evolves, it is crucial to act now and capitalize on the IRA's benefits before time runs out.
1. **Clean Energy and Energy Efficiency Upgrades**: The IRA extends and enhances tax credits for residential energy-efficient improvements, including solar panels, wind turbines, and energy-efficient appliances. By upgrading to clean energy technologies, homeowners can significantly reduce their energy bills and save money in the long run.
2. **Electric Vehicles (EVs)**: The IRA provides a $7,500 tax credit for purchasing new EVs and $4,000 for used EVs. This credit is designed to make EVs more affordable, encouraging consumers to switch from gas-powered vehicles and save on fuel costs in the long run. Additionally, the IRA allocates funds for EV charging infrastructure, making it easier for consumers to adopt EVs.
3. **Prescription Drug Pricing Reforms**: The IRA allows Medicare to negotiate prices directly with drug manufacturers for a select group of drugs, starting with 10 in 2026 and expanding to 20 by 2029. This negotiation power is expected to lower out-of-pocket costs for millions of seniors and disabled individuals enrolled in Medicare Part D. Additionally, the IRA caps monthly insulin costs at $35 for Medicare beneficiaries, effective in 2023.
4. **Affordable Care Act (ACA) Subsidies**: The IRA enhances ACA subsidies, enabling more Americans to access affordable health insurance. By extending subsidies to individuals with incomes up to 400% of the federal poverty level, the IRA ensures that no one pays more than 8.5% of their income for coverage. This expansion results in an average savings of $800 per year for millions of Americans, with over 80% of consumers able to find health insurance for $10 or less a month.
5. **IRS Strengthening and Tax Enforcement**: The IRA includes provisions to strengthen the IRS, ensuring that wealthy individuals and corporations pay their fair share of taxes. By investing in IRS technology and customer service, the IRA aims to improve tax enforcement and close the tax gap. This includes hiring more auditors to focus on high-income individuals and large corporations, as well as investing in technology to enhance the IRS's ability to detect and address tax evasion.
To maximize savings and take advantage of the IRA's benefits, individuals should act promptly. As the political landscape shifts, there is a risk that these provisions may change or be repealed under a future Trump administration. By taking action now, individuals can secure long-term savings and contribute to a more sustainable future.
The IRA offers a unique opportunity for individuals and businesses to save money while promoting clean energy and energy efficiency. By taking advantage of these provisions, consumers can reduce their energy bills, access affordable health insurance, and benefit from prescription drug pricing reforms. As the political landscape evolves, it is crucial to act now and capitalize on the IRA's benefits before time runs out.
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