Rep. Gomez Applauds Passage of Inflation Reduction Act
Washington, August 12, 2022 | Gomez Press Office
LOS ANGELES, CA – Congressman Jimmy Gomez (CA-34) issued this statement after the House passed the Inflation Reduction Act:
“Today, House Democrats sent to President Biden’s desk the landmark Inflation Reduction Act to lower families’ health care, prescription drug and energy costs, make the largest investment in addressing climate change in history, and dramatically reduce the deficit. This bill is wide-ranging in scale and scope, and while not perfect, it shows constituents that Democrats are continuing to tackle our nation’s most complex challenges head on and successfully confronting big pharma, big oil, and billionaire corporations.”
“I am proud that the Inflation Reduction Act includes three climate action bills that I championed to enable working families to participate in the clean energy economy through tax credits for making their homes more energy efficient, cutting down on consumer energy bills, and purchasing used clean vehicles. For the first time, consumers will be able to claim a $4,000 tax rebate for used electric and hybrid vehicles, putting these cars into reach for more people. Older Americans on Medicare will see their out-of-pocket expenses capped at $2,000 a year, insulin costs capped at $35 a month and lower prescription drug prices overall because Medicare will finally be empowered to negotiate drug prices, a policy that Democrats have been fighting to enact for years. This bill also extends enhanced ACA subsidies for three years, meaning 1.5 million Californians will continue to save $1,100 a year in health insurance premiums on Covered California.”
“Importantly, this historic legislation honors our promise to families – and is fully paid for by making the biggest corporations and ultra-wealthy pay their fair share. It includes no new taxes on families making $400,000 or less and no new taxes on small businesses. The Inflation Reduction Act will bring countless benefits to our community, city, and country, and set us on a course toward a more prosperous, equitable, and stronger future.”
These three bills championed by Rep. Gomez are included in the Inflation Reduction Act:
The Affordable EVs for Working Families Act (H.R. 4817)
The Home Energy Savings Act (H.R. 5187)
The New Home Energy Efficiency Act (H.R. 5188)
More on these bills:
Used Clean Vehicle Tax Credit
On July 29, 2021, Congressman Gomez introduced the Affordable EVs for Working Families Act (H.R. 4817). As included in the Inflation Reduction Act, this legislation would create a tax credit for the purchase of used electric and clean vehicles for the first time, worth up to $4,000 or 30% of the vehicle’s sales price.
The credit would be accessible for married couples with adjusted gross incomes up to $150,000 and individuals with income up to $75,000.
The credit is available for the first sale of a used electric or hybrid vehicle from a dealer, for cars with model years over two years old and selling under $25,000.
The credit allows consumers to opt to let participating dealers claim the credit and pass on the savings to the car buyer, aiding consumers without sufficient tax liability.
The credit can begin to be claimed for cars purchased after December 31, 2022.
The used clean vehicle tax credit is not subject to the component and assembly restrictions on new clean vehicles.
Lowering Consumer Energy Bills Through Energy Efficiency Tax Credits
On September 7, 2021, Congressman Gomez introduced a pair of bills, the Home Energy Savings Act and New Home Energy Efficiency Act, to help make homes more efficient, lower consumers’ energy bills, and reduce carbon emissions while creating jobs. These bills were included in the Inflation Reduction Act.
The Home Energy Savings Act (H.R. 5187) as included in the Inflation Reduction Act would increase the tax credit under section 25C of the tax code from 10% to 30%, extend it through 2032, replace the lifetime cap with an annual $1,200 limitation, and establish higher goals for energy efficient home upgrades by modernizing efficiency standards. This credit will be available for making energy efficient home upgrades such as windows, doors, water heaters, furnaces, air conditioners. Without this bill, this credit would have expired in 2021.
The New Home Energy Efficiency Act (H.R. 5188) as included in the Inflation Reduction Act would extend the section 45L tax credit for the construction of energy efficient new homes through 2032, increase it from $2,000 to $2,500 for homes meeting modern energy efficiency standards, create a new $5,000 tier for homes certified under the Department of Energy Zero Energy Ready Home program, and expand the incentive for multifamily homes with a bonus for construction that meets prevailing wage requirements. Without this bill, this credit would have expired in 2021.
An overwhelming majority of the American public supports the Inflation Reduction Act’s key health care, climate, and inflation-fighting measures. Data for Progress found that 73 percent of voters back the Inflation Reduction Act, including 95 percent of Democrats, nearly three-quarters of Independents, and more than half of Republicans. This legislation also enjoys broad support from a wide range of advocacy organizations, including the AFL-CIO, Natural Resources Defense Council, League of Conservation Voters, AARP, UnidosUS, Small Business Majority, Protect Our Care and U.S. Conference of Mayors.