3 Ways the Inflation Reduction Act Could Save You Money

On Tuesday, President Joe Biden signed the Inflation Reduction Act of 2022 into law.

The bill, which is a trimmed version of the Build Back Better Plan, strives to shrink the deficit, reduce healthcare costs and fight climate change.

A key component of the bill is the extension of expanded healthcare subsidies.

Families receiving help paying for health insurance through the public marketplace can qualify through 2025 for more generous subsidies that were set to expire at the end of the year.

“For a lot of people, that Obamacare was done state-by-state and that variety of states and people, the subsidies were set to expire and were going to rise and so, you know, that for upwards of 10 million people, they would see a higher price for health insurance, and this will keep it lower,” Northwestern University Professor of Economics Mark Witte said.

Another potential cost-saving feature is lower prescription drug prices for people enrolled in Medicare.

Under the new law, the Department of Health and Human Services will be able to negotiate prices for some of the most expensive drugs covered under Medicare part B and Part D.

Seniors are expected to begin seeing savings in 2026.

The savings could be by as much as 25% in some cases.

Climate tax breaks and rebates are another cost-saving measure in the Inflation Reduction Act.

The bill encourages people to add energy-efficient upgrades to their homes and it extends subsidies on “clean” vehicles, such as electric cars.

Depending on your income you can receive upfront discounts or tax rebates on items such as solar panels or for basic weatherization of your home.

The clean vehicle credit of up to $7,500 on the purchase of new vehicles is available through 2032.

Income requirements are in place for the clean vehicle subsidy program.

For a complete breakdown of what climate tax rebates and discounts you’re eligible for click here.