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The $437 billion Inflation Reduction Act signed into law by President Joe Biden on Tuesday carries the most significant climate and energy investments in the nation's history, with massive investments in decarbonization across sectors. 

The legislation, which was passed by Democrats in the House and Senate last week, is expected to accelerate the growth of low-carbon economies across the globe. 

The REPEAT Project, a Princeton University-based initiative providing analysis on federal energy and climate policy, projects the legislation will cut the nation's cumulative greenhouse gas emissions by roughly 6.3 billion tons over the next decade. 

The reductions are projected to close two-thirds of the remaining gap between where emissions were expected to land before the Inflation Reduction Act and the nation's climate commitment to reduce emissions to at least 50% below the peak levels reached in 2005. 

The REPEAT Project also projects the legislation to lower the nation's annual energy expenditures by at least 4% in 2030, not including the additional savings that'll be driven by downward pressure on the prices for oil and natural gas. 

The $369 billion investment in climate and energy policies includes numerous tax credits and other subsidies to make clean energy solutions, such as electric vehicles and solar panels, cheaper for Americans. 

According to the White House, the law will bring 950 million solar panels, 120,000 wind turbines and 2,300 grid-scale battery plants to the United States by 2030. The White House estimates $8.5 billion of the investment in clean power generation will come to Minnesota, creating many new jobs.

Other cost-lowering provisions in the law include tax credits for electric vehicle purchases ($7,500 for new, $4,000 for used) and direct consumer rebates for energy efficient home appliances.

For example, households that replace air conditioners, water heaters or furnaces with energy-efficient alternatives will get up to 30% tax credits. They'll qualify for the same credit for home construction projects on windows, doors, insulation or other weatherization measures.

They can also qualify for 50-100% rebates for the cost of installation of energy efficient or electric heat pumps, stoves, ovens, dryers, and water heaters.

A wide array of subsides are also available to small and large businesses, industries, utilities and government. 

The accelerated deployment of clean energy is projected to reduce up to 3,900 premature deaths and up to 100,000 asthma attacks by 2030, according to the White House. 

Health and tax provisions 

Congressional Democrats are also touting the Inflation Reduction Act's provisions aimed at expanding access to high-quality and affordable healthcare. 

The law allows Medicare, for example, to negotiate prices on certain drugs and caps out-of-pocket prescription costs for Medicare beneficiaries at $2,000 per year. 

The law also caps insulin copays at $35 per month for Medicare beneficiaries. 

According to the White House, tax measures in the law will reduce the nation's deficit by hundreds of billions. 

The tax code provisions in the law, for example, set a 15% minimum tax on corporate profits of the nation's largest, most profitable corporations. There will also be a tax fee for companies emitting methane, one of the most serious greenhouse gases.

There is a major investment in the IRS, which it's been argued has been chronically underfunded for decades, which Democrats argue will result in greater enforcement of tax matters involving the wealthiest Americans. 

There is an effective net-zero impact taxation-wise for anyone earning less than $400,000-a-year, as Forbes explains here.

"With this law, the American people won and the special interests lost," Biden remarked at the bill's signing ceremony Tuesday. "Today offers further proof that the soul of America is vibrant, the future of America is bright and the promise of America is real and just beginning." 

Read more about the legislation's impact in Minnesota here

BMTN Note: The broader trend of increasingly severe weather and record-breaking extremes seen in Minnesota and across the globe can be attributed directly to the rapidly warming climate caused by human activity. The IPCC has warned that Earth is "firmly on track toward an unlivable world," and says greenhouse gas emissions must be halved by 2030 in order to limit warming to 1.5C, which would prevent the most catastrophic effects on humankind. You can read more here.

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