Tax News Update    Email this document    Print this document  

May 24, 2021
2021-1054

Senate Finance to mark up clean energy bill

Senate Finance Committee Chairman Ron Wyden (D-OR) has scheduled a markup for Wednesday, May 26 (2:30 p.m.), of his Clean Energy for America Act to consolidate current renewable energy tax incentives, add new ones, and end fossil fuels provisions.

Chairman Wyden's mark generally follows the bill as proposed on April 21, with incentives for:

  • clean electricity, either as a production tax credit or an investment tax credit;
  • clean transportation, including eliminating the EV credit's limitation on the number of credit eligible EVs each manufacturer can sell, and creating a new credit for each qualified commercial electric vehicle; and
  • energy efficiency for homes, residential buildings, and commercial buildings.

The mark includes the extension and modification of the IRC Section 48C 30% credit for investment in qualified property used in a qualified advance energy manufacturing project, which also includes a project that re-equips an industrial or manufacturing facility with equipment designed to reduce its greenhouse gas emissions. This proposal is sponsored by Senators Debbie Stabenow (D-MI) and Joe Manchin (D-WV).

Several of the oil & gas provisions proposed to be repealed were also proposed to be repealed in the Obama administration FY 2017 budget, including the enhanced oil recovery credit, credit for producing oil and gas from marginal wells, etc.

The overall score after including offsets is over $200 billion. The package also includes a living wage requirement for facilities to qualify for the tax credits in a section titled "Workforce Development Requirements."

In a May 12 statement, Chairman Wyden said the clean energy markup would mark the beginning of the Committee's consideration of jobs and infrastructure legislation, to be followed by consideration of "additional key pieces" of that agenda.

Attached are the JCT description of the Chairman's Mark (JCX-26-21) and a revenue estimate (JCX-27-21).

———————————————

Contact Information
For additional information concerning this Alert, please contact:
 
Washington Council Ernst & Young
   •  Any member of the group at (202) 293-7474.

———————————————
ATTACHMENTS

JCX-26-21

JCX-27-21

 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 1996 – 2024, Ernst & Young LLP

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

EY US Tax News Update Master Agreement | EY Privacy Statement