TITLE I--COMMITTEE ON FINANCE
Subtitle A--Deficit Reduction
Part 1--Corporate Tax Reform
(Sec. 10101) This act imposes an alternative minimum tax of 15% of the average annual adjusted financial statement income of domestic corporations (excluding Subchapter S corporations, regulated investment companies, and real estate investment trusts) that exceeds $1 billion over a specified 3-year period. The tax is effective in taxable years beginning after December 31, 2022.
Part 2--Excise Tax on Repurchase of Corporate Stock
(Sec. 10201) The act imposes a non-deductible 1% excise tax on the fair market value of stock repurchased by a publicly traded domestic corporation after 2022, with certain exceptions, including for repurchases that are part of a reorganization, are less than $1 million, that are contributed to certain tax-exempt retirement plans, or that are treated as a dividend. The tax applies to purchases of corporate stock by certain corporate subsidiaries and foreign corporations.
Part 3--Funding the Internal Revenue Service and Improving Taxpayer Compliance
(Sec. 10301) The act provides additional funding for the Internal Revenue Service for taxpayer services and enforcement, including for operations support, business systems modernization, and the development of a free direct e-file tax return system. It also provides additional funding for the Department of the Treasury Inspector General for Tax Administration, the Office of Tax Policy, the Tax Court, and Treasury departmental offices.
Subtitle B--Prescription Drug Pricing Reform
Part 1--Lowering Prices Through Drug Price Negotiation
(Sec. 11001) The act requires the Centers for Medicare & Medicaid Services (CMS) to negotiate the prices of certain prescription drugs under Medicare beginning in 2026.
Specifically, the CMS must negotiate maximum prices for brand-name drugs that do not have other generic equivalents and that account for the greatest Medicare spending. The CMS must negotiate the prices of 10 drugs that are covered under the Medicare prescription drug benefit in 2026, 15 drugs that are covered under the Medicare prescription drug benefit in 2027, 15 drugs that are covered under the Medicare prescription drug benefit or under Medicare medical services in 2028, and 20 drugs that are covered under the Medicare prescription drug benefit or under Medicare medical services in 2029 and each year thereafter.
The selected drugs must be among the 50 drugs with the highest total spending over the most recent 12-month period under the Medicare prescription drug benefit or Medicare medical services and must have had market approval for at least 7 years (for drug products) or 11 years (for biologics). The act excludes (1) orphan drugs that are approved to treat only one rare disease or condition, (2) plasma-derived products, and (3) drugs that account for less than $200 million in annual Medicare spending (adjusted annually for inflation).
The CMS must enter into agreements with drug manufacturers to negotiate prices; manufacturers must submit information relating to costs and other data as part of the negotiation process. Manufacturers that fail to comply with negotiation requirements are subject to civil penalties.
(Sec. 11002) The CMS may delay negotiations for certain biologics with pending biosimilars for up to two years upon manufacturer request.
(Sec. 11003) Drug manufacturers are subject to excise taxes for failing to comply with negotiation requirements, such as failing to furnish required information during the negotiation process.
(Sec. 11004) The act provides funds for FY2022 for the CMS to implement this program.
Part 2--Prescription Drug Inflation Rebates
(Sec. 11101) In addition, the act requires drug manufacturers to issue rebates to the CMS for brand-name drugs without generic equivalents under Medicare medical services that cost $100 or more per year per individual and for which prices increase faster than inflation. Manufacturers that fail to comply are subject to civil penalties.
The act provides funds through FY2031 for the CMS to implement this rebate program.
(Sec. 11102) The act similarly requires drug manufacturers to issue rebates to the CMS for brand-name drugs without generic equivalents under the Medicare prescription drug benefit that cost $100 or more per year per individual and for which prices increase faster than inflation. Manufacturers that fail to comply are subject to civil penalties.
The act provides funds through FY2031 for the CMS to implement this rebate program.
Part 3--Part D Improvements and Maximum Out-of-Pocket Cap for Medicare Beneficiaries
(Sec. 11201) The act eliminates beneficiary cost-sharing above the annual out-of-pocket spending threshold under the Medicare prescription drug benefit beginning in 2024 and caps annual out-of-pocket spending at $2,000 in 2025 (with annual adjustments thereafter). It also establishes a program under which drug manufacturers provide discounts to beneficiaries who have incurred costs above the annual deductible beginning in 2025.
The act also limits base premiums under the Medicare prescription drug benefit for 2024 through 2030 to a 6% annual increase or the amount that would otherwise apply under the prior methodology, whichever is less.
The act provides funds through FY2031 for the CMS to implement these changes and requirements.
(Sec. 11202) The act also establishes a process through which beneficiaries, including those eligible for low-income subsidies, may have their monthly out-of-pocket costs capped and paid in monthly installments beginning in 2025; it provides funds for FY2023 for the CMS to implement this process.
Part 4--Continued Delay of Implementation of Prescription Drug Rebate Rule
(Sec. 11301) The act further delays until 2032 implementation of a Department of Health and Human Services rule relating to the treatment of certain Medicare prescription drug benefit rebates from drug manufacturers for purposes of federal anti-kickback laws.
Part 5--Miscellaneous
The act establishes a series of additional programs and requirements relating to coverage under the Medicare prescription drug benefit and other programs.
(Sec. 11401) The act eliminates cost-sharing under the Medicare prescription drug benefit for adult vaccines that are recommended by the Advisory Committee on Immunization Practices.
(Sec. 11402) Beginning July 1, 2024, the act limits payment under Medicare medical services for biosimilars that do not have an initial average sales price to the payment amount for the reference biologic or the amount that would otherwise apply under the prior methodology, whichever is less.
(Sec. 11403) The act also temporarily increases payment for other biosimilars under Medicare medical services.
(Sec. 11404) Beginning in 2024, the act expands eligibility under the low-income subsidy program of the Medicare prescription drug benefit to allow those with income of up to 150% of the federal poverty line to receive full premium subsidies and a $0 deductible.
(Sec. 11405) It also requires coverage, without cost-sharing, of adult vaccines that are recommended by the Advisory Committee on Immunization Practices under Medicaid and the Children\'s Health Insurance Program (CHIP).
(Sec. 11406) In addition, the act caps cost-sharing under the Medicare prescription drug benefit for a month\'s supply of covered insulin products at (1) for 2023 through 2025, $35; and (2) beginning in 2026, $35, 25% of the government\'s negotiated price, or 25% of the plan\'s negotiated price, whichever is less. The act provides funds for FY2022 for the CMS to implement these provisions.
(Sec. 11407) The act also waives the deductible for insulin furnished through covered durable medical equipment under Medicare medical services and limits coinsurance to $35 for a month\'s supply of such insulin beginning July 1, 2023.
(Sec. 11408) The act provides that a health insurance plan may still be considered a high deductible health plan even if it does not have a deductible for insulin products.
Subtitle C--Affordable Care Act Subsidies
(Sec. 12001) The act extends through 2025 certain adjustments and expansions of the premium tax credit, including to allow taxpayers with income above 400% of the federal poverty line to qualify for the credit.
Subtitle D--Energy SecurityPart 1--Clean Electricity and Reducing Carbon Emissions
(Sec. 13101) The act modifies and extends through 2024 the tax credit for producing electricity from renewable resources, specifically wind, biomass, geothermal and solar, landfill gas, trash, qualified hydropower, and marine and hydrokinetic resources. The act allows additional credit amounts for facilities that pay prevailing wages and meet registered apprenticeship requirements. The act also allows a bonus credit amount for facilities that meet domestic content requirements for certain steel, iron, and manufactured projects and for facilities located in an energy community (i.e., a brownfield site or an area with significant employment related to oil, gas, or coal activities).
The act reduces the credit amount for facilities financed with tax-exempt bonds.
(Sec. 13102) The act extends through 2024 the tax credit for investment in certain energy properties (e.g., solar, fuel cells, waste energy recovery, combined heat and power, small wind property, and microturbine property). It extends through 2034 the credit for geothermal heat pumps.
The act extends the credit to include as energy property energy storage technology, qualified biogas property, electrochromic glass, and microgrid controllers.
The act allows an increased credit rate for projects that pay prevailing wages and meet registered apprenticeship requirements. The act also allows a bonus credit amount for facilities that meet domestic content requirements for steel, iron, and manufactured projects and for facilities located in an energy community.
(Sec. 13103) The act modifies the energy tax credit to allocate 1.8 gigawatts for environmental justice solar and wind capacity credits in low-income communities and Indian lands in 2023 and 2024. Facilities receiving allocations must be placed in service within four years after the allocation date.
(Sec. 13104) The act extends until December 31, 2032, the construction deadline date for carbon capture or direct air capture facilities under the tax credit for carbon oxide sequestration. It also modifies the capacity requirements and base credit amounts for the credit.
(Sec. 13105) The act creates a new tax credit for qualifying zero-emission nuclear electrical power produced and sold after December 31, 2023, and before 2033.
Part 2--Clean Fuels
(Sec. 13201) The act extends through 2024 the income tax credit for biodiesel and renewable diesel used as fuel, the biodiesel excise tax credit, the alternative fuels tax credit, and the second generation biofuel producer tax credit.
(Sec. 13203) The act creates a new tax credit through 2024 for the sale or mixture of sustainable aviation fuel. The base amount of the credit is $1.25 per gallon, with additional amounts for greenhouse gas emission reductions. Producers and importers of such fuel must register with the Department of the Treasury.
(Sec. 13204) The act creates a new tax credit for the production of qualified clean hydrogen during a specified 10-year period. The act defines qualified clean hydrogen as hydrogen that is produced through a process that results in a lifecycle greenhouse gas emissions rate of not greater than 4 kilograms of CO2e per kilogram of hydrogen.
Part 3--Clean Energy and Efficiency Incentives for Individuals(Sec. 13301) The act extends through 2032 the tax credit for nonbusiness (residential) energy property expenditures. It increases the rate of the credit to 30% and allows an annual $1,200 limitation of the credit amount in lieu of a lifetime limitation. The act also allows an annual $2,000 credit for geothermal heat pumps and biomass stoves and increases the credit for windows and doors.
The act also allows a 30% credit, up to $150, for home energy audits. The credit is renamed the energy efficient home improvement credit.
(Sec. 13302) The act extends through 2034 the tax credit for residential clean energy, modifies the phaseout for such credit, and extends the credit to include qualified battery storage technology expenditures.
(Sec. 13303) The act modifies the tax deduction for energy efficient commercial buildings to revise the maximum amount of such deduction and energy efficiency requirements for such buildings.
(Sec. 13304) The act extends the new energy efficient home tax credit through 2032. It increases the credit to allow a $2,500 credit for new homes that meet certain Energy Star efficiency standards and a $5,000 credit for new homes that are certified as zero-energy ready homes, and further allows a credit for energy efficient multifamily dwellings.
Part 4--Clean Vehicles(Sec. 13401) The act modifies requirements for the refundable income tax credit for qualifying plug-in electric vehicles. The modified credit is $3,750 for any vehicle meeting certain critical minerals requirements and $3,750 for vehicles meeting certain battery component requirements. The maximum allowable credit remains $7,500 per vehicle. Vehicles eligible for the credit include those made by qualified U.S. manufacturers and excludes those manufactured or assembled by a hostile foreign entity.
The credit is not available to taxpayers whose modified adjusted gross income exceeds $150,000 ($300,000 for married couples filing jointly) The credit is not allowed for vehicles that have a manufacturer\'s suggested retail price in excess of $80,000 for vans, sport utility vehicles (SUVs), or pickup trucks, and $55,000 for other vehicles.
The credit does not apply to vehicles placed in service after 2032.
(Sec. 13402) The act allows a new tax credit for buyers of previously-owned qualified clean plug-in and fuel cell vehicles. The credit is limited to the lesser of $4,000 or 30% of the vehicle purchase price. The credit is disallowed for taxpayers whose modified adjusted gross income exceeds certain levels and applies only to vehicles with a sales price not exceeding $25,000. It does not apply to vehicles acquired after 2032.
(Sec. 13403) The act creates a new tax credit for qualified commercial clean vehicles. The amount of the credit is the lesser of 15% of the cost of the vehicle (30% for vehicles not powered by a gasoline or diesel internal combustion engine), or (2) the cost of the vehicle in relation to a comparable vehicle. The credit amount may not exceed $7,500 for vehicles weighing less than 14,000 pounds ($40,000 for other vehicles). Eligible vehicles must have a battery capacity of not less than 15 kilowatt hours and be capable of being recharged from an external source of electricity.
The credit does not apply to vehicles acquired after 2032.
(Sec. 13404) The act modifies and extends through 2032 the tax credit for alternative fuel refueling property. Beginning in 2023, charging or refueling property is eligible for the credit only if it is placed in service within a low-income or rural area.
Part 5--Investment in Clean Energy Manufacturing and Energy Security(Sec. 13501) The act provides addition allocations of the 30% qualifying advanced energy project tax credit for investments in projects that reequip, expand, or establish certain energy manufacturing facilities for the production or recycling of renewable energy property, energy storage systems and components, or other energy property.
(Sec. 13502) The act creates a new tax credit for the production and sale of solar and wind components, with a phaseout through 2032.
Part 6--Superfund(Sec. 13601) The act permanently reinstates the Hazardous Substance Superfund financing rate on domestic crude oil and imported petroleum products at 16.4 cents per barrel in 2023, adjusted annually thereafter for inflation.
Part 7--Incentives for Clean Electricity and Clean Transportation(Sec. 13701) The act creates a new tax credit for the production of clean electricity. The credit is for the sale of domestically produced electricity with a greenhouse gas emission rate not greater than zero. To qualify for the credit, electricity must be produced at a qualifying facility placed in service after 2024.
(Sec. 13702) The act creates a new clean electricity investment tax credit for investment in qualifying zero-emissions electricity generation facilities or energy storage technology.
(Sec. 13703) The act allows a five-year recovery period for the depreciation of clean electricity facilities placed in service after 2024.
(Sec. 13704) The act establishes a new tax credit for domestic clean fuel production beginning in 2025.
Part 8--Credit Monetization and Appropriations(Sec. 13801) The act allows certain tax-exempt entities, including state and local governments and Indian tribal governments, to treat certain energy-related tax credit amounts as direct payments of tax.
Part 9--Other Provisions(Sec. 13901) The act makes permanent the increased coal excise tax rate for funding the Black Lung Disability Trust Fund.
(Sec. 13902) The act allows an increased offset of research tax credit amounts against the Social Security payroll taxes of small businesses that are less than 5 years old with less than $5 million in gross receipts.
(Sec. 13903) The act reinstates the current-law suspension of the tax deduction for state and local taxes (i.e., 2018 through 2025). It also extends the limitation on the excess business losses of noncorporate taxpayers.
TITLE II--COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY
Subtitle A--General Provisions
The act provides funding to the Department of Agriculture (USDA) for a variety of programs related to conservation and renewable energy. The funds under this title shall remain available through FY2031.
Subtitle B--Conservation
(Sec. 21001) Specifically, the act provides funding, subject to conditions, to USDA for the following voluntary conservation programs: the environmental quality incentives program, the conservation stewardship program, the agricultural conservation easement program, and the regional conservation partnership program.
(Sec. 21002) It also provides funding to USDA\'s Natural Resources Conservation Service for (1) conservation technical assistance; and (2) a program to quantify carbon sequestration and carbon dioxide, methane, and nitrous oxide emissions.
Subtitle C--Rural Development and Agricultural Credit
In addition, the act provides funding to USDA for several programs that support the generation, storage, and use of renewable energy in rural communities.
(Sec. 22001) Specifically, the act provides funding for the cost of loans under the Rural Electrification Act of 1936 to generate electricity from renewable sources for resale to rural and nonrural residents, including projects that store electricity.
(Sec. 22002) The act also provides funding for the Rural Energy for America Program, under which USDA must provide financial assistance to agricultural producers and rural small businesses for renewable energy systems and energy efficiency projects, including grants and loans guaranteed by USDA for