The Biden administration on Tuesday announced new tax credits for companies that generate clean electricity, but insisted President-elect Donald Trump was wrong to try to cancel the credits.
The Treasury Department and the Internal Revenue Service released final rules on clean power investments and production tax credits less than two weeks before Trump’s inauguration. The deduction is one of about 20 tax provisions in the Anti-Inflation Act passed in 2022 with support only from Democrats. The credits are designed to save families money on energy bills and encourage the adoption of clean energy, electric vehicles, energy-efficient buildings, and low-carbon manufacturing.
The United States currently gets more than 40% of its electricity from clean energy sources, including solar, wind, hydropower, and nuclear power.
The centerpiece of President Trump’s energy policy is “Drill, Baby, Drill,” supporting increased production of fossil fuels like oil, natural gas and coal, and promising to dismantle what he calls Democrats’ “Green New scam.” President Trump has vowed to eliminate subsidies for wind power included in his landmark 2022 climate bill.
Electricity demand has accelerated in recent years, driven by data centers, electric vehicles, and the proliferation of artificial intelligence powered by new manufacturing facilities. Last year, 60 gigawatts of clean power and energy storage, including giant batteries, were added to the grid, roughly equivalent to adding 30 Hoover Dams in just 12 months, said Deputy Energy Secretary David Turk. said.
Turkey and Deputy Treasury Secretary Wally Adeyemo touted the benefits of the credit in a call with reporters on Monday, saying the credit will create jobs, meet growing demand for electricity and save Americans billions of dollars in electricity bills. It said it would lead to savings and support the long-term development of new zero-emissions technologies. . Adeyemo said these policies are “energy moonshots” that reward innovation and innovative technologies developed in the United States to reduce energy costs and create jobs.
If things progress as planned over the next few years, the climate change law is expected to reduce U.S. emissions by about 40% by 2030. Combined with the provisions of the bipartisan infrastructure law, the climate change law could save ratepayers up to $38 billion in electricity costs by 2030, according to a DOE analysis.
James Hewett, senior manager of U.S. policy and advocacy at Breakthrough Energy, an organization that supports clean energy adoption, said, “The United States is experiencing a manufacturing resurgence, with more than 900 new clean energy projects underway since the IRA was passed. and construction of a transportation manufacturing facility has been announced.” energy.
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