Tax Incentives for Clean Energy and Renewable Technologies
House Ways and Means Chair Neal said he’s looking at tax incentives for clean energy and renewable technologies, an approach that aligns with President Biden’s plan to boost subsidies for green investments, energy efficiency and electric vehicles. President Biden has also directed federal agencies to stop subsidizing fossil fuels and plans to ask Congress to zero-out oil and gas industry incentives. A likely objective is expanding a tax credit currently valued at as much as $7,500 for the purchase of an electric vehicle to expand the incentive by lifting a per-manufacturer cap on available credits. Also, existing tax credits could help support construction of energy-efficient commercial buildings, wind farms and solar arrays, as well as the capture of carbon dioxide.
Finally, members of Congress have consistently resisted increasing the tax on gasoline, which since 1993 flows to the Highway Trust Fund, and the scope of any infrastructure funding plan will likely require other tax hikes, including on U.S. businesses and their foreign profits. Chairman Neal signaled that any tax increases would not immediately go into effect, citing the continuing Covid-19 crisis.