Senators Shaheen, Hassan Introduce Legislation to Overhaul Energy Tax Code, Combat Climate Change
Senators Shaheen, Hassan Introduce Legislation to Overhaul Energy Tax Code, Combat Climate Change
The Clean Energy for America Act would consolidate 44 energy incentives into three technology-neutral provisions to promote energy independence and a low-carbon economy
WASHINGTON – As part of their efforts to combat climate change and promote the use of renewable energy, Senators Jeanne Shaheen (D-NH) and Maggie Hassan (D-NH) recently joined their colleagues in introducing legislation to overhaul the federal tax code to support an innovative, low-carbon economy. The Clean Energy for America Act would consolidate the current 44 energy incentives into three technology-neutral provisions that encourage clean electricity, clean transportation and energy efficiency.
“As we see the escalating impact of climate change in our environment, wildlife and weather, it’s more urgent than ever before that Congress take action,” Senator Shaheen said. “By reforming our tax code to incentivize clean electricity and transportation, this important legislation will help combat the effects of climate change, confront our energy challenges, create clean energy jobs and invest in a low-carbon economy. We cannot wait to respond to our climate crisis – I urge Republicans to work with Democrats to move this legislation forward.”
“By simplifying and streamlining what is currently a very complex assortment of clean energy incentives in the tax code, this legislation will help promote the use of renewable energy, which is vital to combating climate change and supporting job creation,” Senator Hassan said. “I’ll keep working to find innovative ways to invest in cleaner and more efficient energy technology in order to protect our environment and build a stronger, more affordable energy future for our state and country.”
To incentivize clean electricity, the bill would provide a production tax credit (PTC) or an investment tax credit (ITC) to facilities that are at least 35 percent cleaner than average, with a maximum of a 2.4 cents per kilowatt hour PTC or a 30 percent ITC available for facilities with zero carbon emissions.
To encourage clean transportation fuel, the bill would provide a tax credit for fuels that are at least 25 percent cleaner than average, with the maximum credit of $1 per gallon available for fuels with zero carbon emissions. The bill also eliminates the per-manufacturer cap on the tax credit for electric vehicles and extends the credit for fuel cell electric vehicles.
To incentivize energy conservation, the bill would provide a performance-based tax credit for energy efficient homes and tax deduction for energy efficient commercial buildings. The value of the tax credit would increase as more energy is conserved.
Text of the legislation available is here. A one-page summary of the bill is available here.
