This is a landmark US federal law aimed at reducing inflation by reducing fiscal deficit by USD 238 billion over three years. It also includes provisions for investment in climate change mitigation for USD 361 billion, making it the largest climate change related investment in US history. This includes investments in wind, solar and other renewables, in nuclear power, carbon capture systems for energy and industry, light and heavy duty clean vehicles, clean fuel production, green hydrogen, direct air capture facilities, as well as energy efficiency upgrades for buildings and support for heat pumps. It is expected that this will help reduce US GHG emissions by ~1 GtCO2e.

In 2024, the Department of the Treasury and the Internal Revenue Service (IRS) and Department of Energy announced tax credit allocations of up to USD 6 billion for projects that expand clean energy manufacturing and recycling and critical materials refining, processing and recycling, and for projects that reduce greenhouse gas emissions at industrial facilities. Additionally in 2024, the IRS established final regulations regarding Federal income tax credits for the purchase of qualifying new and previously-owned clean vehicles, including new and previously-owned plug-in electric vehicles powered by an electric battery and new qualified fuel cell motor vehicles. These regulations establish supply chain verification requirements for electric vehicle batteries, focusing on critical minerals and foreign entity compliance.