A budget proposal by the House Ways and Means Committee suggests an early phaseout of clean energy tax credits. The draft reconciliation package reduces investment and production tax credits for nuclear power, wind, solar, batteries, geothermal, and other clean energy technologies after 2028, eliminating them entirely by 2032. A more generous credit for carbon sequestration and the clean fuels production credit are preserved. Industry groups criticize the proposal, arguing it would increase electricity prices, hinder manufacturing growth spurred by the Inflation Reduction Act, and weaken the U.S.’s competitive edge in artificial intelligence. The proposal tightens eligibility criteria, requiring projects to be ‘placed in service’ rather than merely starting construction. This change could disproportionately affect large-scale renewable projects. Advocates warn that the proposal could harm emerging technologies like advanced nuclear and geothermal energy. Additionally, the proposal includes a two-year sunset for the IRA’s tax credit transferability mechanism, potentially limiting clean energy investment, especially for smaller developers.
— new from Utility Dive
