US Treasury to Prioritize Final Guidance on Inflation Reduction Act Clean Energy Tax Credits
Key Ideas
- The US Department of Treasury is prioritizing issuing final guidance on clean energy tax credits before the end of President Joe Biden's administration.
- The guidance includes rules for the 45Z tax credit for low-carbon road and aviation fuels, which will replace expiring fuel-specific credits.
- Final guidance is also expected for the 45V clean hydrogen tax credit, aiming to provide certainty for the industry to invest in clean hydrogen projects.
- Other tax credits like the clean electricity production credit and clean electricity investment credit are set to be finalized by the administration to support renewable energy growth.
The US Department of Treasury has announced its plan to prioritize issuing final guidance on a range of Inflation Reduction Act clean energy tax credits before the end of President Joe Biden's administration. This guidance includes details on qualifying for the 45Z tax credit, which will offer incentives for low-carbon road and aviation fuels starting in 2022. While finalizing guidance for the 45Z credit may be influenced by the outcome of the upcoming presidential election, the Treasury is actively working on providing clarity on the qualification criteria. The Biden administration is also working on finalizing guidance for the 45V clean hydrogen tax credit by the end of the year to encourage investment in clean hydrogen projects. Additionally, the Treasury aims to issue final guidance on other tax credits like the clean electricity production credit and clean electricity investment credit to support renewable energy growth. The biofuel industry emphasizes the importance of policy clarity for fuel and feedstock contracts, while some lawmakers advocate for restrictions on foreign feedstocks to claim the credit. The administration's focus on providing certainty through final guidance underscores the commitment to advancing clean energy and reducing greenhouse gas emissions in alignment with climate goals.
Topics
Power
Renewable Energy
Clean Energy
Climate Change
Investment
Legislation
Greenhouse Gas Emissions
Biofuel
Tax Credits
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