The House passed the Inflation Reduction Act (IRA) on Friday with a 220 to 207 party line vote, nearly a week after the Senate passed the bill with a close 51-50 vote.
What’s in it for Ag?
If the IRA is signed by President Biden, a corporate minimum tax of 15% will cover the bill’s $740 billion price tag, according to John Block, senior policy advisor at Olsson, Frank, and Weeda law firm.
Block says the provisions that will impact ag most revolve around biofuels, farm debt, conservation and on-farm energy costs, including:
1. $1-a-gallon tax credit for biomass-based diesel
2. $5.3 billion farm debt relief package
3. A collective $3 billion for renewable energy projects in rural areas, including USDA’s Rural Energy for America Program
4. $18 billion to four conservation programs
5. Wildfire prevention and climate resiliency projects in public and private forests in the range of $5 billion
Solutions or Severed Ties?
A lack of bipartisanship in the IRA was evident through the Senate’s close vote on Sunday and continued through the House on Friday. Sen. Joni Ernst (R-IA) rang in on AgriTalk to share her own sentiments on the reconciliation bill ahead of the debate on Friday.
“The bill has billions of dollars on wish list items, which we know will increase inflation,” Ernst told AgriTalk Host Chip Flory. “It’s going to hurt our small business, our manufacturers and importantly here in Iowa, it’s going to hurt our farmers.”
No House republican voted for the bill on Friday. Democratic votes, however, did vary. But ultimately the democratic majority in the House won the bill.
Rep. Jim Clyburn (D-S.C.) says it isn’t necessarily everything his party wanted, though:
“I’ve always said a half loaf is better than no loaf,” he said. “You come back and get the other half if we can have a successful election in November and get the numbers we need.”
The IRA will now move to the Resolute Desk where President Biden is expected to sign it into action.
More on policy:
What’s Ag’s Stake in the Senate-Passed Inflation Reduction Act?
Will the IRA’s Biofuel Provisions Ease Pump Prices? Sen. Ernst Isn’t Convinced
$80 Billion in IRS Funding Will Not be Used to Audit Middle Class Americans
