Inflation Reduction Act: What the Democrats' bill does for climate change, drug prices and corporate taxes

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Inflation Reduction Act: What the Democrats' bill does for climate change, drug prices and corporate taxes
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The Inflation Reduction Act caps out-of-pocket drug costs for Americans on Medicare at $2,000 a year, beginning in 2025.

Democrats’ Inflation Reduction Act is heading to the House of Representatives for a vote on Friday after clearing the Senate this past weekend, and with it, some big changes to key sectors of the U.S. economy.

As MarketWatch reported, the bill’s energy and climate-focused ICLN, +0.45% incentives are peppered with rebates and tax credits that will directly impact households. They address heat pumps, appliance efficiency, solar panels, electric vehicles TSLA, +0.78% F, +3.14% and more. Investors saw an immediate impact of the Senate’s advancing the bill on Monday, as shares of solar, electric vehicle and fuel cell companies all rallied.

Before the deal, 13 million people were facing higher health-insurance premiums next year. Now, Affordable Care Act subsidies will be extended for three years, sparing millions of Americans.

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