The Inflation Reduction Act  was designed to enhance domestic manufacturing and secure domestic supply chains. The act, signed by President Biden in 2022, was sponsored by Sens. Chuck Shumer (D-NY) and Joe Manchin (D-WV), with the legislation also drawing from House Bill HR5376 sponsored by Rep. John A. Yarmuth (D-KY 3).

According to a White house Fact Sheet dated August 16, 2023 (one year after the passage of the legislation) “The Inflation Reduction Act of 2022 aims to boost domestic manufacturing, creating good-paying jobs and build more resilient, secure, and trusted supply chains.”

Two crucial sections of the Act, 48C and 45X, support domestic manufacturing. Section 48C focuses on capital investments to enhance manufacturing capabilities, while Section 45X provides tax credits for manufactured products in the renewable energy sector.