ICYMI: How Virginia Benefits from the Inflation Reduction Act
WASHINGTON, D.C. — Today, U.S. Senators Mark R. Warner and Tim Kaine highlighted some of the ways in which the Inflation Reduction Act will benefit Virginians.
“Virginians have a lot to benefit from the Inflation Reduction Act. This historic legislation will help lower Virginians’ prescription drug and energy costs, help them access health care, and tackle climate change, which has had a devastating toll on communities all across the Commonwealth,” said the senators. “We were proud to vote for this bill and urge the House of Representatives to pass it and get it to President Biden’s desk ASAP.”
Lower Prescription Drug Costs:
- The bill allows Medicare to negotiate drug prices for seniors and people with disabilities—a provision Warner and Kaine have long fought to pass to lower prescription drug costs.
- The bill establishes a $2,000 cap on out-of-pocket costs for prescription drugs for seniors covered under Medicare Part D. In 2020, more than 36,000 Virginians with Medicare Part D spent more than $2,000 out-of-pocket on their prescription drugs.
- The bill expands the Low-Income Subsidy program, a program that currently helps cover prescription drug costs for over 11,000 low-income Virginians with Medicare.
- The bill provides free coverage for vaccines under Medicare Part D and improves access to vaccines under Medicaid and the Children’s Health Insurance Program (CHIP). In 2020, nearly 85,000 Virginians received a vaccine covered under Medicare Part D.
Affordable Health Care:
- During the pandemic, Congress enhanced subsidies under the Affordable Care Act (ACA) to help lower health care premiums for millions of Americans. The Inflation Reduction Act would extend these enhanced subsidies for three years through 2025 to help make Virginians’ health insurance more affordable. Over 300,000 Virginians have ACA coverage in 2022.
- The Center for Medicare & Medicaid Services (CMS) estimated that Virginians with ACA insurance would have seen a $71 increase in their premiums for the next coverage year if these subsidies weren’t extended.
Black Lung Benefits:
- The bill permanently extends the Black Lung Disability Trust Fund excise tax at a higher rate, providing more certainty for miners, miner retirees, and their families who rely on the fund to access benefits. In Virginia, thousands of miners and their families have received benefits through the trust fund since it was established, including approximately 2,600 Virginians last year alone.
Clean Energy and Climate Provisions:
- The bill will reduce carbon emissions by roughly 40 percent by 2030.
- The bill incentivizes investment in and production of renewable energy technologies like solar power and the Coastal Virginia Offshore Wind project. The legislation expands the 48C investment tax credit for clean energy manufacturers, with $4 billion reserved for use exclusively in coal communities. All clean energy tax credits include a bonus for meeting domestic manufacturing requirements related to steel, iron, or other manufactured components. The bill also expands tax credits for residential clean energy and home efficiency improvements.
- According to a recent analysis, the clean energy provisions are expected to create nearly 1 million jobs per year.
- The bill includes tax credits for clean medium and heavy duty trucks, such as those produced at the Volvo Trucks New River Valley Plant.
- The bill includes a $7,500 consumer credit for the purchase of new electric vehicles and incentivizes that vehicles are produced in North America.
- The bill includes $9.7 billion for financial assistance to rural electric cooperatives to improve resilience and affordability.
- The bill includes $2 billion for the USDA Rural Energy for America Program to provide competitive grants and loan guarantees to farmers, ranchers, and rural small businesses for renewable energy systems or energy efficiency improvements.
- The bill includes $20 billion to help farmers and ranchers adopt agriculture conservation practices that improve landscape resilience.
- The legislation takes steps to make sure that the largest corporations and wealthiest Americans pay their fair share in taxes, without increasing taxes on small businesses or families making less than $400,000 a year.
- The bill also provides funding to modernize Internal Revenue Service (IRS) systems and improve customer service when paying taxes. This will help ensure the IRS has the resources it needs to process tax returns quickly, get rebates to taxpayers faster, and address challenges Americans have when filing taxes.