Biden Restarts $10 Billion Tax Credit Gravy Train for Clean-Energy Firms
The Biden administration has restarted a tax credit program for clean energy manufacturers using $10 billion from the Inflation Reduction Act.
There’s even a bonus credit if companies build wind and solar projects in low-income areas (which are the least likely to fight back against these noisy, ugly home-depreciating monstrosities). Via Bloomberg’s Ari Natter [emphasis, links added]:
“Clean energy projects that expand domestic manufacturing, reduce industrial greenhouse gas emissions, or help create a domestic supply chain for critical minerals can begin applying for the “advanced energy” tax credit at the end of May, the Treasury Department announced Monday.
“The program provides a 30% tax credit for technologies including carbon capture systems, grid modernization projects, clean hydrogen production, and electric or fuel cell vehicles, as well as equipment that reduces emissions from industrial facilities, the department said in a notice.
“The first round of funding, some $4 billion, includes $1.6 billion devoted to projects in areas where coal mines and coal-fired power plants have shut down.
“The Qualifying Advanced Energy Project Credit was first created as part of the American Recovery and Reinvestment Act in 2009, which provided $2.3 billion at the time.
“The program quickly ran out of cash, and efforts to refund it stalled in Congress until it was included in Democrats’ marquee climate bill last year, which provided some $370 billion in climate funding.
“In addition, the Treasury Department announced it is establishing an Inflation Reduction Act program to provide up to 20% in an additional bonus tax credit for wind and solar projects located in low-income communities that could increase the total value of the incentive to as much as 50% of the project’s cost.”
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