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                     The Inflation Reduction Act-22 & Its Impact On ESG
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Inflation Reduction Act-22
1. Inflation Reduction Act-22(IRA22) is passed by the 117th United States 
Congress & signed by President Joe Biden on August 16th, 2022.
2. The IRA22 will collect $737 billion and spend $369 billion on energy 
production and $300 billion on lowering the deficit
3. The background factor that aided to pass IRA22 is the Build Back Better 
Act which was passed on September 27, 2021, & Build Back Better 
Plan, a legislative framework proposed by President Joe Biden.
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Insights to IRA22
The law is expected to generate money over ten years from:
I. $265 billion by reforming the cost of prescription pharmaceuticals, 
including having Medicare negotiate drug costs.
II. $222 billion by applying a 15% corporation minimum tax rate only to 
businesses with yearly financial statement income of more than $1 
billion.
III. $203.7 billion by increased tax collection.
IV. $74 billion by levying a 1% extra tax on share repurchases.
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Insights to IRA22
The law is expected to spend the money in the same period on:
I. $369 billion on addressing the climatic crisis and internal energy 
sustainability.
II. $300 billion on lowering the deficit.
III. $80 billion on greater financial support for the IRS’s transformation and 
tax collection efforts.
IV. $4 billion on funding for western states’ disaster protection.
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The Impact on ESG
1. The IRA22 is the most comprehensive Climate Change law ever passed 
in the United States.
2. The IRA22 will invest $369 billion in energy production.
3. The act aims to reduce residential energy costs
4. Aims to reduce carbon emissions by roughly 40% by 2030
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Thank You
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