April 21, 2021
Senate Finance Chairman Wyden introduces energy tax bill
Senate Finance Committee Chairman Ron Wyden (D-OR) April 21 reintroduced the Clean Energy for America Act, which proposes to eliminate fossil fuel tax incentives and replace the dozens of energy tax incentives in the Code currently with a simpler set of provisions that encourage clean electricity & transportation and energy efficiency.
The bill would provide an emissions-based, technology-neutral tax credit for clean electricity production, either as a production tax credit of up to 2.5 cents per kilowatt hour or an investment tax credit of up to 30 percent, with investments in grid improvements like stand-alone energy storage and high-capacity transmission lines qualifying for the full-value investment tax credit. The storage and grid improvement credit would offer the option to opt-out of normalization for regulated utilities.
Clean fuels, i.e., if lifecycle emissions are at least 25% less than the current US average, and zero and net-negative emission fuels qualify for a credit of up to $1.00 per gallon. For EVs, the per-manufacturer 200,000 unit cap for the $7,500 tax credit would be repealed, and the credit would be made refundable. Commercial operators would have access to a non-refundable credit worth 30% of an EV purchase.
Energy efficiency provisions include:
For fossil fuels, the bill:
The bill and a summary are attached below.
Clean Energy for America Act
Clean Energy for America Act – Section by Section