Legislative update: House passes plan to increase debt limit

The bill would repeal most of the energy-related tax credits enacted under the “Inflation Reduction Act of 2022.”

The bill would repeal most of the energy-related tax credits enacted under the IRA.

The U.S. House of Representatives yesterday narrowly passed H.R. 2811 (the “Limit, Save, Grow Act Of 2023”), the Republican plan to increase the debt limit, by a vote of 217-215. It will be necessary to increase the borrowing authority of the government—the debt ceiling—to prevent default on obligations expected sometime between June and September.

The bill would repeal most of the energy-related tax credits enacted under the “Inflation Reduction Act of 2022” (IRA). The bill would also rescind most of the additional funding for the IRS provided in the IRA, among other things.

Read text [PDF 741 KB] of the bill

In order for the bill to become law, the bill would have to be approved by the Democratically controlled Senate and be signed by President Biden.

Following passage of the bill by the House, Senate Majority Leader Chuck Schumer (D-NY) released a statement indicating the bill “is DOA in the Senate…Democrats won’t allow it.”

In addition, the Biden Administration issued a Statement of Administration Policy [PDF 121 KB] indicating that “if the President were presented with the Limit, Save, Grow Act of 2023, he would veto it.”

 

 

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The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.