Congressional House Democrats Release Energy Tax Incentives Proposal

Congressional House Democrats released their energy tax incentives proposal known as the Growing Renewable Energy and Efficiency Now Act (GREEN Act, H.R. 7330) which is similar to the energy tax provisions included in the Democrats’ infrastructure legislation.

The bill includes tax credit extensions and expansions for wind, solar, biodiesel, carbon dioxide capture and storage, and energy efficiency measures for homes and businesses.

The GREEN Act would also raise limits on the electric vehicle tax credit as well as charging infrastructure. Click here for a full summary.

Rep. Lloyd Doggett (D-TX), a senior Member of the House Ways and Means Committee, introduced legislation to incentivize EV infrastructure expansion by modifying the alternative fuel refueling property credit (30C).

The Electric Vehicle CHARGE Act was already approved by the House in the Moving Forward Act (H.R. 2) last year. The bill would–

— Extend the tax credit for installing electric vehicle charging infrastructure for five years. The alternative fuel vehicle refueling property credit (§30C) provides a 30 percent tax credit for costs incurred by businesses or municipalities up to a $30,000 maximum credit per location. For drivers installing a charger at home, the maximum credit is $1,000, reflecting the lower cost of the level 1 or 2 chargers commonly used in homes. This credit is set to expire in 2021.

— Expands the credit for publicly accessible electric vehicle charging stations. For charging stations that hit the cap because they cost more than $100,000 – common for publicly available DC fast chargers – this legislation would eliminate the cap and provide a 20 percent credit for costs in excess of $100,000. This would incentivize technological innovation and building more fast-chargers. To qualify for this expanded credit, the infrastructure must:

     — Be intended for general public use and either accept credit cards as a form of payment or not charge a fee, or

     — Be intended for exclusive use by government or commercial vehicle fleets

— Provides certainty by providing the credit for property placed in service through 2026.

Senator Bernie Sanders (I-VT), and Representatives Earl Blumenauer (D-OR) and Alexandria Ocasio-Cortez (D-NY) also recently introduced legislation that would require President Biden to declare a national climate emergency under the National Emergencies Act of 1976.

The National Climate Emergency Act would also require the president to deliver a report within one year of enactment that details actions taken in response to the national emergency, including investments in large-scale mitigation and resiliency projects and to enable a “racially and socially just transition” to a clean energy economy.

The bill is unlikely to become law given the slim Democratic majorities in the House and Senate.

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