Budget Bill Will Include New Energy Efficiency Tax Incentives

The Finance Committee is set to have an outsize role in shaping the reconciliation package, and Chair Ron Wyden (D-OR) said it will include S. 1298, the Clean Energy for America Act. The bill proposes to do away with some of the 44 different energy tax incentives currently on the books in favor of longer term, performance-based energy incentives that are technology neutral. It would extend, expand, and consolidate energy tax credits into three categories intended to incentivize energy efficiency and cleaner electricity and transportation fuels. It would also repeal tax incentives for fossil fuels, ensuring the tax code rewards only clean energy.

Wyden stated that, “the climate catastrophes of the past year have underscored the urgent need to move toward a clean energy future. This is Congress’ last chance to take bold action to avert the worst climate outcomes. The Clean Energy for America Act, which would overhaul the energy tax code, and has been approved by the Finance Committee, will be the linchpin of our efforts.”

Separately in the House last week, a group of 186 Democrats sent a letter to Speaker Pelosi and Leader Schumer calling for the infrastructure package to include language that “extends and modernizes tax incentives for commercial and residential energy efficiency improvements and residential electrification” among other clean energy tax incentives.

To become an IWLA member visit, http://31y.93c.myftpupload.com/become-an-iwla-member/