Here’s a breakdown of the IRA’s major provisions-by the numbers. The Bipartisan Infrastructure Law (BIL), the CHIPS & Science Act, and IRA have partially overlapping priorities and together introduce $2 trillion in new federal spending over the next ten years. This is the third piece of legislation passed since late 2021 that seeks to improve US economic competitiveness, innovation, and industrial productivity. 14,” Congressional Budget Office, September 7, 2022. 2 “Estimated budgetary effects of Public Law 117–169, to provide for reconciliation pursuant to Title II of S. The Congressional Budget Office (CBO) estimates that the law will reduce budget deficits by $237 billion over the next decade. You can make contributions to your Roth IRA after you reach age 70 ½. If you satisfy the requirements, qualified distributions are tax-free. You cannot deduct contributions to a Roth IRA. It also allocates money directly to environmental justice priorities and requires recipients of many funding streams to demonstrate equity impacts. A Roth IRA is an IRA that, except as explained below, is subject to the rules that apply to a traditional IRA. The act aims to catalyze investments in domestic manufacturing capacity, encourage procurement of critical supplies domestically or from free-trade partners, and jump-start R&D and commercialization of leading-edge technologies such as carbon capture and storage and clean hydrogen.
This article is a collaborative effort by Justin Badlam, Jared Cox, Adi Kumar, Nehal Mehta, Sara O’Rourke, and Julia Silvis, representing views from McKinsey’s Public Sector Practice.
