Is july 28th. And we've got a new bill from congress to go through. Through. But a quick reminder that the coupon on building your wealth does expire.

Today will be the last chance to get the best pricing on the programs on building your wealth in the real estate market in the stock market self employed as a real estate agent or making youtube content or as a do it yourself rental renovator and property manager. Links down below. Hey everyone we kevin here well congress is back at it again with another 725. A page a spending bill this one is called the inflation relief act of 2022 or inflation reduction act of 2022 and it proposes 433 billion dollars in spending a far cry from the a 35.

Billion dollar build back better plan that joe biden was going for it does come on the heels of the chips bill passing that's the 52 billion dollar chips build up just past the senate and while this bill is not passed yet it does have mansion support to get through budget reconciliation that doesn't mean it's going to pass. But let's get into some of the weeds to see exactly what this bill does and what this bill doesn't do all right folks. Here are some of the details. So first 433 billion dollars in spending 300 billion dollars in deficit reduction.

And i'll show you some of the ways they're actually thinking about getting revenue into this they do think they're going to get 739 billion dollars in revenue. They're branding. This as something that's going to stabilize prices by reducing the cost of energy related investments and electric vehicles. We'll talk about those along with new tax credits for everyday folks now they're also going to be increasing.

This is one of the first big measures so getting into the number one here they're going to be increasing the corporate minimum tax to 15 on companies with at least 1 billion dollars of revenue. That's expected to raise 313 billion dollars of tax revenue. Until of course those companies find new loopholes. They're going to increase the budget for the internal revenue service.

Something that is expected to raise 124 billion dollars by auditing more americans number three they're going to tax carried interest if you know what that is you know it's 14 billion or at least. They're expecting to raise 14 billion dollars from that really this is for like venture. Capitalists or syndications or investment managers who manage other people's money they also did not include any kind of changes to the salt tax deduction. No expansion here no taxes on stock buybacks and no millionaire tax.

We did however get a 369 billion dollar investment that's proposed to lower energy costs increase clean production and reduce carbon emissions by 40 by twenty thirty and what i've done because i'm going to link at the bill down below. As i put little page numbers here so if any at any part you get confused by some of these uh don't worry. It's not the easiest thing to read i get confused too. So you can always fact check me by looking at the bill directly first.

I noticed that there are changes in definition from qualified plug in electric drive motor to clean vehicles. Which is really interesting because presumably that includes hybrids as well and not just like all electric vehicles. Which in my opinion is kind of like the legacy auto manufacturers kind of saying like hey uh can we uh can we include all the good old hybrids as well uh who knows. But anyway.

I thought that was really interesting of course. I expect it will also include hydrogen fuel cells and such we also see the elimination of the limit of number of vehicles eligible for the credit. There used to be a limit on like the first 200 000 vehicles that would be eligible for the credit and then that eligibility went away that is being lifted by this bill to qualify qualifying vehicles must have 40 percent of their battery either quote extracted or processed in any country in which the us. Has a free trade agreement or is recycled in north america uh.

If it's placed in service within these time. Frames so basically in simple speak here us. Mexico. Or canada produced vehicles and batteries as long as 40.

Percent of the battery is produced in the us canada mexico or other free trade countries in 2020. Or by 2024. They qualify for the credit. 50.

By 2020 or throughout. 2024. 60. Throughout.

2025. 70. Throughout 2026 in order to qualify for this. So.

It does sort of hark into some domestic manufacturing. One credit per vin so unfortunately for vehicle flippers and i kind of had a little feeling myself to him like can i just like buy and sell a bunch of these and milk. A bunch of these credits nope one credit per vehicle. Vin number vehicle identification number and for individuals.

There is a dollar 7500 as long as the vehicle matches this description out here in terms of being manufactured mostly in the united states mexico or canada and you'll qualify for seventy five hundred dollars as a tax credit if your modified adjusted gross income is under 300 000 for a joint household 225 000 for a head of household and 150 000 for single individuals. There are limits on the value of the vehicles. As well the limits do uh start at well. The limits are eighty thousand.

Dollars. A four vans eighty thousand dollars for suvs eighty thousand dollars for pickups and fifty five thousand dollars for other vehicles previously owned vehicles will only qualify for four thousand dollars or thirty percent. Whichever is lower so for example a three thousand dollar vehicle would only qualify for about nine hundred dollars used vehicles do need to be under twenty five thousand dollars and weigh less than 14 000. Pounds now this gets tricky the qualified commercial clean vehicle part and it gets tricky because there are a lot of tesla fan boys and fan girls out there who are like oh.

My gosh tesla. Semi trucks are going to get a full 40 000. All right let's clear this up a little bit okay. So here's what the law says you'll get a 30 credit on non diesel and non gas commercial vehicles up to seventy five hundred dollars.

If it's under fourteen thousand dollars this or fourteen thousand pounds this matches. The individuals seventy five hundred dollars. So both commercial and individuals get that seventy five hundred dollars as long as the vehicles qualify and they're under fourteen thousand pounds. But you get forty thousand dollars.

If it's over fourteen thousand pounds. However these are actually the limits the limit is seventy five hundred dollars. The limit is forty thousand dollars. And the limit is based on the smaller number of either what you pay or the incremental cost of the vehicle.

Which is the difference between what you're buying and a comparable vehicle with comparable use that's gas or diesel let's give you an example if a tesla semi truck costs two hundred fifty thousand dollars and a manned semi truck costs two hundred thousand dollars then you would get thirty percent on the difference as long as they're deemed to be comparable vehicles. Which i think it would be a hard. We would be hard pressed as tesla fan people to argue that you know a semi truck. That's diesel is somehow vastly different from the use of a tesla semi truck right but anyway you'd get 30 on the 50k or 30 on 250k.

Whichever is less which in this case. The lesser amount would be 15 dollars to really get the full forty thousand dollars. The electric version would have to cost a hundred twenty thousand dollars more than the equivalent gas or diesel version. Also it's worth noting that clean diesel and gas vehicles that are more expensive than non clean.

Diesel and non gas vehicles will qualify for a 15 tax credit as well. Which is very interesting because that kind of means that gas and diesel vehicles could be getting 15 as a tax credit that was a little bit complicated. But hopefully that makes sense you can rewind. If it didn't there's also up to a 100 000 credit for uh basically.

Installing ev charging stations fueling stations. Which i thought was interesting that'll last through december 32. Along with all these other benefits that'll last. All the way up through december 30 2032.

There's an extension of the geothermal and solar credits through january 1. 2025. Which will be cheered by the solar industry. Then getting away from energy again we do have the affordable care act extension 64 billion investment medicare being allowed to negotiate drug prices which is expected to raise 288 billion dollars.

The senate parliamentarian does still have to go through this and agree that this bill belongs in the budget reconciliation process she might end up slicing pieces out of this. And it will require kirsten cinema. Being on board. And she says.

So far that she still has to review. The text regarding responses. So far. Mitch mcconnell has responded saying that democrats have already crushed american families with historic inflation now they want to pile on giant tax hikes that will hammer workers and kill many thousands of american jobs first they killed your family's budget.

Now they want to kill your job too well folks there you have it the inflation reduction act of 2022 thanks so much for watching and we'll see in the next one.