By Laura Walling, Senior Director of Government Relations, Goodwill Industries International
At the time of this writing, the House is poised to pass a health, climate and tax package which recently cleared the Senate by a process known reconciliation which allowed the bill to pass with a simple majority and avoid a Republican filibuster. Assuming the act passes without any changes, the bill will be enrolled and head to the President for signature.
The bill provides $369 billion to fund climate and energy provisions, including to accelerate the buildout of renewable energy, speed up the adoption of electric vehicles (EVs), and aid in the deployment of energy efficiency technologies in disadvantaged communities. The health provisions are meant to bring down prescription drug prices as well as extend enhanced health insurance premium subsidies for people enrolled in Affordable Care Act (ACA) plans. The climate and health provisions will be financed by tax changes largely geared at corporations.
Below are highlights of key provisions of interest to Goodwill® and the communities we serve:
Climate and Energy
- $60 billion to accelerate clean energy manufacturing including solar panels and wind turbines.
- Provides $4,000 tax credits for eligible consumers to purchase used EVs, and up to $7,500 for new EVs.
- Directs the EPA administrator to award grants and contracts that reimburse recipients for workforce development and training to support the maintenance, charging, fueling and operation of zero-emission vehicles
- Provies for the EPA administrator to award grants to eligible entities for activities that may include workforce development that help to reduce greenhouse gas, emissions, and other pollutants.
- $27 billion to establish a new Greenhouse Gas Reduction Fund to accelerate the deployment of low-carbon technologies and provide low-cost financing for clean energy infrastructure projects. At least 40% of the benefits must flow to disadvantaged communities.
- Deduction for energy efficient commercial buildings. A building would have to reduce its annual energy and power costs by more than 25%. An increased deduction would be available for qualified retrofits.
- Allow claimants to apply for tax refunds or payments equal to the value of their tax credits through 2032. Payments wouldn’t be available for certain renewable energy projects, unless they’re owned by tax-exempt entities.
- Provides $4.3 billion for fiscal 2022 for the Energy Department to implement a “Home Owner Managing Energy Savings” or HOMES rebate program.
- $2.8 billion would be provided for fiscal 2022 for EPA to provide environmental and climate justice grants for community-led projects to reduce GHG emissions and mitigate climate and health risks.
- Provide $1.89 billion for the Federal Highway Administration to provide grants to states, local governments, territories, or transportation authorities to increase neighborhood access and transportation equity, or reduce the negative effects of infrastructure projects in disadvantaged or underserved communities.
- $837.5 million to HUD for grants or loans to the owners and sponsors of affordable housing to implement or promote: energy or water efficiency; indoor air quality or sustainability; zero-emission electricity generation or low-emission building materials; energy storage; building electrification; and climate resilience.
Health Care
- Under the bill, Medicare would negotiate price ceilings for the 20 most expensive medications by 2029. Drug companies that refuse to negotiate would be hit with penalties.
- The bill would ensure Medicare enrollees pay no more than $2,000 out-of-pocket for drugs annually.
- The bill requires drug companies to pay rebates to the government if the price of their drugs covered by Medicare Parts B and D rise faster than inflation.
- Enhanced premium assistance for people with ACA plans is set to expire at the end of 2022. The Inflation Reduction Act extends that assistance to 2025.
- Directs HHS to establish a “Drug Price Negotiation Program” to negotiate a maximum price of high-cost prescription drugs beginning in 2026 for Medicare Part B and D.
Unfortunately, the final agreement did not include measures for childcare to support working families, paid leave, home and community base service support or large investments in workforce development as were included in the larger framework of the Build Back Better initiative. Goodwill will continue to provide relevant updates as Congress continues to debate those measures.
