House reconciliation bill targets clean energy: what you need to know

In a nutshell, the proposed budget reconciliation bill slashes various tax credits and funds established by the Inflation Reduction Act. The House Ways & Means Committee’s plan will impact companies benefiting from current financial incentives and funding. Businesses have the opportunity to advocate against the elimination of IRA credits.

The House Ways and Means Committee unveiled a draft of the reconciliation bill, proposing significant cuts to clean energy tax credits from the 2022 Inflation Reduction Act (IRA). These reductions complement the cuts suggested by other committees, affecting:

– Accelerated phase-out of clean energy credits, shortening the duration of incentives for renewable energy projects and companies aiming for net-zero targets.
– Reduction of Department of Energy loans, retracting unspent funds that support programs like the Advanced Technology Vehicle Manufacturing Loan Program and the Tribal Energy Loan Program.
– Reduction of the Greenhouse Gas Reduction Fund, potentially revoking remaining funds designated for clean energy loans.
– Restriction of the Advanced Manufacturing Credit, prohibiting the use of components from specific foreign entities.

These changes will impact climate funding negatively, but companies can advocate for the preservation of IRA credits before the House vote. In the meantime, readers are encouraged to share their opinions through a survey by Trellis.