Draft federal tax package includes ITC extension and direct pay for solar incentives

The House Ways and Means Committee is currently debating legislation that could reduce emissions from the electricity sector to between 64% and 73% below 2005 levels by 2031. Under the Build Back Better Act, tax incentives for clean technologies such as wind and solar, energy efficiency and electric vehicles be updated and expanded through the end of the decade.

Jesse Jenkins, assistant professor of mechanical and aerospace engineering at Princeton, explained the incentives in a series of tweets.

The draft bill also meets the “direct pay” wishes of the solar industry. Under the proposed structure, nonprofits, tribal nations, and other groups ineligible for tax credits can instead receive direct wage refunds for solar energy projects.

“We can now power our homes, our businesses and even our cars and trucks with clean, green and renewable energy. Fiscal incentives are one of the most crucial tools to help us transition from dirty, polluting energy sources with the necessary speed. These policies are also among the most popular.69% of voters in competitive House districts support clean energy investments such as wind and solar by expanding tax credits to drive innovation and production, and that’s exactly what this legislation does,” said Lisa Frank, Executive Director Environment America Washington Legislative Office, in a statement. “We applaud Chairman Richard Neal, Subcommittee Chairman Mike Thompson, and the many clean energy champions in Congress for proposing the bold clean energy investments we need. We urge all members of the House Ways and Means Committee to support this important legislation.”

The House Ways and Means committee has begun preparing the bill, and Speaker Nancy Pelosi said she… committed to passing it on by Sept. 27.

Comments are closed.