Climate initiatives laid out in President Joe Biden’s Inflation Reduction Act (IRA) come with a bigger price tag than anticipated: over $400 billion more, per the latest estimates.
The Congressional Budget Office (CBO) revealed the increased $428 billion cost in its budget and economic outlook for the next decade. The agency admitted that its projections were subject to change, citing variables such as the pace of deployment and use of low-emissions technologies and electric vehicles, as well as the number of taxpayers who have yet to claim certain tax credits enacted in the IRA.
“The budgetary effects of energy-related tax provisions remain highly uncertain,” stated CBO.
The CBO originally estimated in 2022 that the IRA’s climate and energy provisions would cost around $400 billion. However, other corporations and organizations said that number was far too low.
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