Carper, Colleagues Introduce Legislation to Overhaul Energy Tax Code, Create Jobs, and Combat Climate Crisis
WASHINGTON, D.C. – Today, U.S. Senator Tom Carper (D-Del.), Chairman of the Senate Committee on Environment and Public Works and a senior member of the Senate Finance Committee, joined 24 of his colleagues to introduce legislation that would overhaul the federal energy tax code, create jobs, and combat climate change. The Clean Energy for America Act would consolidate current energy tax incentives into emissions-based provisions that incentivize clean electricity, clean transportation, and energy efficiency. The incentives would be available to all energy technologies as long as they meet emissions reduction goals.
“Our tax code should be working to help our nation lead the global fight against climate change and create good-paying American jobs. I’m proud to join Chairman Wyden in introducing the Clean Energy America Act, which will do just that, putting our tax system on track to help protect our planet,” said Chairman Carper. “It’s time we update our tax code to support American innovation, reduce pollution, and foster economic growth. To that end, I’m particularly pleased that this legislation draws on a number of commonsense tax policies I authored that will support our nation’s clean energy infrastructure and move our economy to a brighter future.”
The bill is cosponsored by Senators Ron Wyden (D-Ore.), Debbie Stabenow (D-Mich.), Majority Leader Charles E. Schumer (D-N.Y.), Maria Cantwell (D-Wash.), Ben Cardin (D-Md.), Michael Bennet (D-Colo.), Sheldon Whitehouse (D-R.I.), Maggie Hassan (D-N.H.), Catherine Cortez Masto (D-Nev.), Dianne Feinstein (D-Calif.), Dick Durbin (D-Ill.), Amy Klobuchar (D-Minn.), Jeanne Shaheen (D-N.H.), Kirsten Gillibrand (D-N.Y.), Richard Blumenthal (D-Conn.), Brian Schatz (D-Hawaii), Mazie Hirono (D-Hawaii), Martin Heinrich (D-N.M.), Tim Kaine (D-Va.), Cory Booker (D-N.J.), Chris Van Hollen (D-Md.), Tina Smith (D-Minn.), Tammy Baldwin (D-Wis.), and Jacky Rosen (D-Nev).
To incentivize clean electricity, the bill would provide an emissions-based, technology-neutral tax credit for facilities with zero or net negative carbon emissions. Any new zero-emission facility may elect either a production tax credit of up to 2.5 cents per kilowatt-hour or an investment tax credit of up to 30 percent. Additionally, investments in critical grid improvements, like stand-alone energy storage and high-capacity transmission lines, would qualify for the full-value investment tax credit.
To encourage clean transportation fuel, the bill would provide long-term incentives for battery and fuel cell electric vehicles and electric vehicle charging. It would also provide a technology-neutral tax credit for domestic production of clean transportation fuel that are at least 25 percent cleaner than average, with clean fuels required to reach net zero by 2030 in order to qualify.
To incentivize energy conservation, the bill would provide a performance-based tax incentives for energy efficient homes and for energy efficient commercial buildings. The value of the tax incentives would increase as more energy is conserved.