Higgins Announces Approval of Legislation Lowering Prescription Costs, Providing Tax Credits for Electric Vehicle Purchases & Reducing Energy Costs for Homeowners

Congressman Brian Higgins (NY-26) announced the House of Representatives has approved the Inflation Reduction Act.  The bill, which already passed in the Senate, now moves to the President’s desk to become law. As a member of the House Ways and Means Committee, Congressman Higgins played a key role in crafting the bill.

The Inflation Reduction Act is the largest investment in climate in United States history. The bill will reduce carbon emissions by roughly 40 percent by 2030, and is expected to create up to 9 million good-paying jobs over the next decade. Additionally, the bill will lower energy costs and prescription drug costs, providing relief to American families and seniors.

Video: https://youtu.be/fIP8XslXtOI

In remarks on the House floor, Congressman Higgins said, “The 1970 Clean Air Act was passed by a Democratic-led Congress and Republican President after millions of Americans demanded change. Five decades later, a new generation of Americans are calling on Congress to act on our biggest challenges. The Inflation Reduction Act is not just a good climate bill, it’s also a major achievement.”

Below are highlights of what is in the bill for Western New York businesses and residents:

Lowering Health Care Costs:

• Drug Price Negotiations: The US is currently prohibited from negotiating Medicare prescription drug prices directly with drug companies. The Inflation Reduction Act would finally change that to decrease costs for seniors. The bill would also cap out-of-pocket prescription drug costs for those on Medicare to $2,000/year.
• Insulin: Medicare beneficiaries will have their insulin costs capped at $35/month. As of 2021, 151,021 people were Medicare-eligible in NY-26.
• Health Insurance Costs: Extends the enhanced Affordable Care Act premium tax credits put in place by the American Rescue Plan through 2025, helping to lower health insurance costs and prevent 3 million Americans from losing their health coverage at the end of the year.

Electric and Plug-In Hybrid Vehicles Tax Credit:

• Up to $7,500 tax credit to buy new clean vehicles (for married filers with an Adjusted Gross Income of $300,000 or less, head of household filers with an income of $225,000 or under, $150,000 cap for others)
• $4,000 consumer tax credit to buy used clean vehicles (available to married filers with an Adjusted Gross Income of $150,000 or under, head of household filers with $112,500 income or less, and $75,000 cap for other filers)
• $3 billion for the United States Postal Service to electrify its fleet

Clean Energy Incentives for Homeowners: Buffalo and communities across Western New York have some of the oldest housing stock in the country. Congressman Higgins has supported efforts to reach “net-zero” housing – homes with no electric bill - and this moves toward that goal. The Inflation Reduction Act will reduce home energy costs in the following ways:

• Rebates to electrify appliances in single-family homes
• Rebates for the purchase of energy-efficient heating systems
• Tax credits for energy-efficient doors and windows
• Tax credits for heat pumps, rooftop solar, electric HVAC systems, and energy-efficient water heaters
• Funding will also be directed toward zero-emission multi-family housing

Environmental Justice: Western New York is home to many neighborhoods that are hurt by air pollution. The Inflation Reduction Act would help fix that:

• $27 billion to accelerate the use of clean energy technologies in disadvantaged communities
• $5 billion for re-forestation, including urban tree planting
• $3 billion grant program to reconnect communities to infrastructure – aimed at funding for projects like the Kensington and Scajaquada
• $3 billion block grant fund to build capacity to help adapt to climate change
• $2.6 billion to coastal community resiliency projects to help deal with rising water levels

Green Manufacturing and Jobs: Industries across Western New York are already investing in green energy jobs. The Inflation Reduction Act will accelerate those efforts:

• $20 billion in loans to construct clean vehicle manufacturing facilities
• $250 billion in lending authority at the Department of Energy to support green energy technologies
• $10 billion investment tax credit to support clean technology manufacturing
• $2 billion in funding to support the automobile industry in electric vehicle plant investments
• Emphasis on the promotion of the North American supply chain, with a focus on Canada-US
• Tax credit to promote electric vehicle production in construction equipment and other high-carbon emission entities
• Examples of WNY companies and workers who could benefit: GM, Ford, Linde, Viridi Parente, Honeywell, and others

A large number of organizations, labor unions, and businesses are supporting the bill, included among them are AARP, AFL-CIO, League of Conservation Voters, General Motors, Ford, and SEIU.