Here is the timeline for when each of the major provisions of the Inflation Reduction Act is slated to take effect.
The big picture: A majority of the provisions start to take effect after this year's November midterms but before the 2024 presidential election.
Most of the health provisions — which lower drug prices and out-of-pocket costs for some of Medicare's 64 million enrollees — would take effect in 2023 or later.
- The three-year extension of ACA subsidies would take effect when enrollment begins this November.
The climate provisions provide tax credits and rebates for a wide range of items, including solar panels and high-efficiency heating and cooling appliances, that consumers and companies can immediately use.
- But a new requirement that electric vehicles be assembled in North America to be eligible for the credits would slash the list of eligible vehicles from 72 to about 25, according to the Alliance for Automotive Innovation, an auto industry lobbying group.
As for the tax provisions, funding for the Internal Revenue Service to improve services will take a while to implement and enforce, and the corporate minimum tax will affect companies' 2023 taxes but not current year taxes.
Editor's note: This article has been updated with more details about the timeline for ACA subsidies.
