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The Senate has passed a bill that would amend the Internal Revenue Code to provide for corporate tax reform. The bill would impose a new corporate alternative minimum tax, and would exempt certain corporations from the tax. The bill would also allow for a corporate AMT foreign tax credit. This section of the bill deals with the treatment of foreign corporations for the purposes of the repurchase of stock by a covered corporation. The bill establishes a new program to negotiate drug prices on behalf of Medicare Part B and D enrollees, and sets the maximum fair price for a selected drug at the price negotiated by the program. This section of the bill establishes exceptions for small biotech drugs from the definition of "negotiation-eligible drug." This section of the bill requires manufacturers to provide access to maximum fair prices for drugs to certain eligible individuals and entities during the price applicability period. This bill amends the Patient Protection and Affordable Care Act to increase the initial coverage limit and out-of-pocket threshold for 2025. It also requires drug manufacturers to provide rebates to the government for drugs that have prices that increase faster than inflation. The bill establishes a program to provide discounts on prescription drugs for certain Medicare beneficiaries. This bill amends the Social Security Act to require that, for plan year 2023 and subsequent plan years, the copayment amount for a covered insulin product dispensed to a low-income individual may not exceed the applicable copayment amount for the product under the prescription drug plan or Medicare Advantage plan in which the individual is enrolled. The bill also limits the monthly coinsurance and adjusts the supplier payment under Medicare Part B for insulin furnished through durable medical equipment. Additionally, the bill extends and modifies the credit for electricity produced from certain renewable resources.

The Energy Security Act extends tax credits for solar and wind energy facilities, nuclear energy production, alternative fuel vehicles, energy efficient buildings, and industrial facilities that reduce greenhouse gas emissions. The Clean Electricity Production Incentive provides credits to qualified facilities that produce electricity within the United States, with an additional 10 percent credit if the taxpayer certifies that any steel, iron, or manufactured product used in the construction of the facility was produced in the United States. The Clean Electricity Investment Credit is a tax credit available for qualified investments in clean electricity facilities and energy storage technologies. This section also allows for a credit with respect to qualified investments in certain energy property. Finally, this section amends the Internal Revenue Code to provide a tax credit for the production of clean transportation fuels.

The Energy Policy Act of 2005 created a tax credit for businesses that make investments in eligible components for use in a trade or business. The credit is equal to 30% of the cost of the investment, and the taxpayer may elect to apply the credit against the tax imposed. This section also deals with the clean fuel production credit, which is a credit that is available for producing transportation fuels with low emissions. The credit is available for monoglycerides, diglycerides, triglycerides, free fatty acids, and fatty acid esters. To be eligible for the credit, the taxpayer must be registered as a producer of clean fuel at the time of production and must provide certification from an unrelated party demonstrating compliance with requirements similar to those established under the Carbon Offsetting and Reduction Scheme for International Aviation. The fuel must also be produced in the United States. The Tax Cuts and Jobs Act allows businesses to claim a tax credit for investments in clean energy production, including the clean fuel production credit, the energy credit, the qualifying advanced energy project credit, and the clean electricity investment credit. The bill also allows businesses to elect to claim the renewable electricity production credit or the carbon capture equipment credit in lieu of the business energy investment tax credit. The bill also amends the Internal Revenue Code to allow for a three-year carryback of certain business tax credits and extends the tax rate for certain taxpayers to taxable years beginning after December 31, 2021. Finally, the Act reinstates the deduction for state and local taxes through 2026. The Energy Act of 2020 appropriates funds for various clean energy initiatives.

The Clean Air Act appropriates funds for various activities related to reducing greenhouse gas emissions, including a Low Emissions Electricity Program, consumer and industry outreach and education, technical assistance and partnerships with state, tribal and local governments, and assessment of anticipated reductions in emissions. Additionally, the EPA is appropriated $850,000,000 for fiscal year 2022 to remain available until September 30, 2028 for grants, rebates, contracts, loans, and other activities related to reducing methane emissions from petroleum and natural gas systems. This section also imposes a charge on methane emissions that exceed an applicable waste emissions threshold from an owner or operator of an applicable facility that reports more than 25,000 metric tons of carbon dioxide equivalent of greenhouse gases emitted per year. The Climate Resilience and Livable Communities Act authorizes various programs to help communities adapt to climate change and provides funding for infrastructure to support them. Additionally, it appropriates funds for oversight of these programs and for climate resilience and adaptation programs for Indian Tribes.