All that remains is President Biden’s signature. The House passed the climate, health, and tax Inflation Reduction Act (H.R. 5376) passed by a party-line vote of 220 to 207, and Biden plans to sign it into law on Tuesday, August 16th (it will be signed by the time you read this). Below are a few new resources on the measure:
- Bill Text: Engrossed Amendment Senate (8/07/2022)
- Senate Democrats Resources page
- Tax Bill Tries to Make EVs More Affordable; May Do the Opposite, Lori Valigra, Bangor (ME) Daily News, Aug. 11, 2022.
- Inflation Reduction Act: What the Pending Act Means for Nonprofits, Kelsey Vatsaas, CliftonLarsonAllen, Aug. 11, 2022.
- What the Inflation Reduction Act does and doesn't do about rising prices, Juliana Kim, NPR, Aug. 11, 2022.
IRA2022 implements numerous federal environmental policy initiatives through direct funding programs rather than tax deductions or tax credits. Nonprofits are eligible to apply for several of these programs for use in program-related activities and impact investments. A detailed list of key takeaways of “Funding for Nonprofit Programs and Impact Investments can be found here.
On the chopping block in IRA2022 from the what was in the $1.7 billion Build Back Better legislation that the U.S. House of Representatives passed last November are universal pre-kindergarten, lower child care costs, paid family and sick leave and the enhanced child tax credit, among other provisions.
One key early childhood provision from Biden’s original plan that could resurface in different legislation later this year is the
expanded child tax credit, which expired in late 2021. It gave parents up to $300 a month per child for children under 6, and up to $250 a month for children from 6 to 17. It was widely credited with
dramatically lowering the country’s child poverty rate while it was in place. The tax credit, which the American Rescue Plan made available to the nation’s lowest-income households for the first time, could still reappear in an end-of-year tax deal. Be sure to remind your congressional members (including state directors and legislative staffers) of the importance of each of the issues above and how funding these to appropriate levels strengthens Louisiana’s nonprofit sector and our communities.
