Articles tagged with "tax-credits"
IRS Sued Over Anti-Solar & Anti-Wind Tax Rules - CleanTechnica
A coalition of tribal utilities, local governments, consumer, and environmental groups has filed a lawsuit against the IRS and Treasury Department challenging new tax credit rules that disproportionately and unfairly target wind and solar energy projects. The IRS recently eliminated a key method for renewable energy companies to prove construction commencement, a requirement to qualify for federal tax credits before their July 4, 2026 expiration. Plaintiffs argue this change arbitrarily singles out solar and wind projects without adequate justification, disrupting over a decade of established rules and likely leading to higher electricity prices for consumers. The lawsuit, led by the Oregon Environmental Council and joined by groups such as the NRDC, Public Citizen, Hopi Utilities Corporation, and several local government offices, contends that the IRS’s actions are part of a broader pattern by the Trump administration to impede renewable energy development. The plaintiffs emphasize that these restrictive tax rules threaten clean energy growth, increase pollution, and exacerbate climate-related harms, while also raising utility costs for vulnerable populations. They seek
energyrenewable-energysolar-powerwind-energytax-creditsclean-energy-policyIRS-regulationsU.S. Biodiesel & Renewable Diesel Imports Fall Sharply in 2025 after Tax Credit Change - CleanTechnica
In the first half of 2025, U.S. imports of biodiesel and renewable diesel dropped sharply compared to previous years, reaching their lowest levels since 2012. Biodiesel imports fell from 35,000 barrels per day (b/d) in 1H24 to 2,000 b/d in 1H25, while renewable diesel imports declined from 33,000 b/d to 5,000 b/d. This decline is primarily attributed to the loss of a $1 per gallon tax credit (BTC) for imported biofuels, which was replaced in 2025 by a tax credit applying only to domestically produced fuels. This policy change created an economic disadvantage for imports. Additionally, overall U.S. consumption of these fuels decreased due to uncertainty around blending requirements and negative profit margins, with renewable diesel consumption down about 30% and biodiesel consumption down about 40% compared to 1H24. The combined effect of reduced consumption and the tax credit
energybiodieselrenewable-dieselbiofuelstax-creditsU.S.-energy-policyfuel-importsTax Credits Drive Carbon Capture Deployment in US EIA Annual Energy Outlook - CleanTechnica
The U.S. Energy Information Administration’s Annual Energy Outlook 2025 (AEO2025) introduces a new Carbon Capture, Allocation, Transportation, and Sequestration (CCATS) module to model carbon capture deployment through the coming decades. The report projects that CO2 capture at electric power and industrial facilities will increase through the 2030s, primarily driven by enhanced tax credits established under the 2022 Inflation Reduction Act (IRA). These tax credits, which can be claimed for projects beginning construction before 2033 and last for up to 12 years after service, significantly incentivize carbon capture, with projected peak capture rates reaching between 1.5% and 3.5% of energy emissions in the late 2030s. However, CO2 capture is expected to decline after these credits expire by mid-century. The AEO2025 scenarios show variation in peak CO2 capture amounts, ranging from about 56 million metric tons (MMmt) in the Alternative Electricity case
energycarbon-capturetax-creditscarbon-sequestrationCO2-emissionsclean-energyclimate-policyHow to Use Clean Energy Tax Credits Before They Disappear
The article discusses the impending expiration of key clean energy tax credits established under the 2022 Inflation Reduction Act (IRA), which have significantly supported Americans in adopting climate-friendly technologies. These tax credits, initially available through 2032, are now being cut back sharply due to recent legislation signed by President Trump, which also undermines broader climate policy efforts. While the IRA’s funding for state efficiency and electrification rebate programs remains largely intact, the federal tax credits that help consumers save thousands on clean energy investments are set to disappear within months. Key deadlines include September 30 for electric vehicle (EV) tax credits, which offer up to $7,500 for new EVs meeting domestic manufacturing requirements and up to $4,000 for used EVs under $25,000. After this date, these credits will no longer be available, potentially increasing EV costs and limiting access for low- and moderate-income buyers. The Energy Efficient Home Improvement Credit, providing up to $2,000 for heat pumps,
energyclean-energytax-creditsrenewable-energyelectric-vehiclesenergy-efficiencyhome-improvementsUS chipmakers could see bigger tax credits if Trump’s spending bill passes
The Trump administration’s current spending bill, known as the “Big, Beautiful Bill,” includes a provision that could significantly increase tax credits for semiconductor manufacturers building plants in the U.S. The bill, which has already passed the Senate, proposes raising the tax credit from 25% to 35%. This enhanced credit aims to incentivize companies like Intel, TSMC, and Micron Technology to expand their domestic manufacturing capabilities. This potential tax boost comes at a critical time for the semiconductor industry, which has faced challenges due to recent export restrictions on advanced AI chips to China. The increased tax credit could help offset some of the difficulties caused by these trade limitations and support the growth of U.S.-based chip production. However, the final impact depends on whether the spending bill passes in its current form.
materialssemiconductorchip-manufacturingtax-creditsUS-manufacturingtechnology-industryIntelThe Senate Just Put Clean Energy for AI in the Crosshairs
The US Senate recently passed a budget megabill that includes significant setbacks for renewable energy in the United States. Key provisions in the bill end tax credits for wind and solar projects placed in service after 2027, jeopardizing hundreds of planned clean energy projects nationwide. This move comes alongside other climate-related setbacks, such as new tax credits for coal and the sunsetting of electric vehicle tax credits. The original Senate bill was even harsher, proposing an excise tax on wind and solar businesses sourcing materials from certain foreign countries, including China, which would have severely damaged the industries. Although the final version removed this excise tax, it still limits tax credits to projects starting construction within the next year, creating uncertainty and financial risk for clean energy investments. The bill’s passage has drawn criticism from a broad coalition including environmentalists, energy analysts, labor unions, Silicon Valley leaders, and some Senate Republicans. Experts warn that cutting these tax credits will hinder the expansion of clean energy needed to meet growing electricity demands
energyclean-energyrenewable-energytax-creditswind-powersolar-powerAI-energy-demandWhat Will Happen To All Those EV Charging Stations?
The article discusses the uncertain future of the rapidly expanding network of electric vehicle (EV) charging stations in the United States amid political and legislative challenges. Despite a push by Republican lawmakers to eliminate the $7,500 federal tax credit for EV purchases—a move expected to severely impact the US EV market—construction of new charging infrastructure continues. This expansion is partly driven by a short-term rush from consumers aiming to capitalize on the current tax credit before it potentially disappears. However, the final fate of the tax credit remains uncertain due to procedural constraints imposed by the Senate Parliamentarian, who has blocked certain provisions that would ease emissions regulations favored by the Biden administration. Industry stakeholders in EV charging are moving forward with confidence that zero-emission mobility will persist beyond the current political climate, anticipating continued growth even after the 2028 presidential transition. A significant technical challenge is the lengthy and complex process of installing fast charging stations, which often requires extensive electrical grid upgrades. To address this, companies are integrating energy storage solutions—b
energyelectric-vehiclesEV-charging-stationsenergy-storageelectric-mobilitytax-creditsUS-auto-industrySenate Republicans Look Ready to Kill Clean Energy & EV Tax Credits — Shocker - CleanTechnica
The article from CleanTechnica highlights the ongoing political battle over clean energy and electric vehicle (EV) tax credits in the United States. It underscores that Republican politicians, historically funded by the fossil fuel industry, have consistently opposed legislation promoting clean energy, energy efficiency, and EV incentives despite growing evidence of environmental harm caused by fossil fuels. While Democrats enacted significant clean energy tax credits through the Inflation Reduction Act of 2022 when they controlled the federal government, the current Republican majority in the White House, House, and Senate is moving to repeal or drastically reduce these incentives. Recent developments indicate that the Senate Republicans are poised to phase out clean energy and energy efficiency tax credits, albeit at a slower pace than the House’s more aggressive budget bill. However, EV incentives face rapid and severe cuts. Critics, including the Natural Resources Defense Council and Senator Ron Wyden, warn that these actions will lead to higher energy prices, job losses in manufacturing, factory closures, and exacerbate the climate crisis. The article conveys
energyclean-energyelectric-vehiclesenergy-efficiencytax-creditsclimate-policyrenewable-energy2 Millions Jobs at Risk if Republicans Repeal Clean Manufacturing Tax Credits - CleanTechnica
The article discusses the significant job risks posed by a Republican-led House bill that seeks to repeal the Clean Manufacturing Tax Credits established under the Inflation Reduction Act of 2022. According to an analysis by the BlueGreen Alliance, over two million jobs across the manufacturing sector could be lost if the bill becomes law. This includes nearly 300,000 direct manufacturing jobs, more than one million indirect jobs tied to supply chains, and approximately 643,000 induced jobs related to economic activity generated by these sectors. The Alliance emphasizes that these figures are based on company announcements and do not account for projects already canceled, suggesting the actual impact could be even more severe. The job losses would affect a range of states, including both traditionally Democratic and Republican ones, with California, Georgia, Michigan, Illinois, Tennessee, Arizona, and South Carolina each facing over 100,000 jobs at risk. The Alliance highlights that many of these states were won by President Trump in the 2024 election, underscoring the political
energyclean-manufacturingtax-creditsjob-riskInflation-Reduction-Acteconomic-impactmanufacturing-jobsRepublican Budget Bill to Raise People's Energy Prices - CleanTechnica
The article from CleanTechnica discusses the potential negative impacts of a Republican budget bill that aims to repeal clean energy tax credits established under the Inflation Reduction Act. According to a report by NERA Economic Consulting, commissioned by the Clean Buyers Energy Association, removing these technology-neutral tax incentives—such as the §45Y production tax credit and §48E investment tax credit—would lead to higher energy prices across 19 states. The analysis highlights that without these credits, energy systems would rely more heavily on traditional, costlier energy sources, resulting in significant electricity price increases, with seven states facing double-digit percentage hikes between 2026 and 2032. The broader economic consequences of repealing clean energy tax credits are severe. The report warns that inflated energy costs would suppress commercial and industrial activity, reduce labor and capital demand, and cause wage losses and declining household incomes. This combination would constrain consumer spending and economic resilience, leading to shrinking economies, increased financial strain on households, and potential job losses in key
energyclean-energytax-creditselectricity-priceseconomic-impactrenewable-energyenergy-policyRepublicans in House Who Don't Want Clean Energy Tax Credits Cut Look to Senators to Save Them - CleanTechnica
The article discusses the political dynamics surrounding clean energy and electric vehicle tax credits established by the Inflation Reduction Act of 2022. Although these incentives disproportionately benefit districts represented by Republican lawmakers, many Republicans initially voted to cut these tax credits to align with party and oil and gas industry interests. However, 13 Republican House members from vulnerable districts, led by Rep. Jen Kiggans (R-VA), have recently expressed strong concerns about provisions that would phase down these incentives and impose strict new supply chain requirements, warning that such measures could threaten billions in investments and thousands of jobs. These lawmakers have appealed to Senate leaders, urging them to restore the tax credits in the final bill to support U.S. energy producers, manufacturers, and workers, emphasizing the need for a "pro-energy growth" approach that balances taxpayer protection with economic opportunity. Notably, while tax credits for renewables face cuts, incentives for nuclear power and biofuels remain intact, reflecting political preferences that may not align with maximizing competitiveness against
energyclean-energytax-creditsrenewable-energyInflation-Reduction-Actenergy-policyenergy-investment