(WASHINGTON) –The Inflation Reduction Act, a $739 billion measure signed into law by President Joe Biden on Tuesday, levies a 15% minimum tax on large corporations and marks the most significant climate legislation in U.S. history. Meanwhile, the law will reduce the federal deficit by $305 billion over roughly the next decade, according to the nonpartisan Congressional Budget Office.
More immediately, however, the legislation will impact everyday Americans’ wallets.
The law, which passed the House and Senate with support from Democrats in party-line votes, empowers a federal agency to negotiate with health insurers over the prices for prescription drugs under Medicare, for instance, which should bring down the cost of some drugs for seniors.
Further, the measure puts a ceiling on out-of-pocket costs at $2,000 beginning in 2025 for people enrolled in Medicare Part D, the prescription drug plan for seniors.
Beyond health care, the Inflation Reduction Act carries a host of tax credits and discounts on everything from electric cars to solar energy.
Americans can determine the financial benefits available to them under the law with help from a savings calculator created by Rewiring America, a nonprofit that aims to achieve energy efficiency through the electrification of “everything in our communities.” After entering personal information about the location, size, and income of a given household, the calculator will share all of the savings accessible through the measure.
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