U.S. Senator Ron Wyden, D-Ore, has introduced the Clean Energy for America Act, which creates new tax incentives for the production of clean energy and the promotion of new technologies.
According to a one-page summary of the Act, the bill proposes a simpler set of “long-term, performance-based energy tax incentives that are technology-neutral and promote clean energy in the United States.” One reason: the current system of energy incentives is overly complex.
“Senator Wyden’s Clean Energy for America Act includes an innovative technology-neutral tax credit that would move national tax policy in the right direction to reduce greenhouse gas emissions and create long-term stability for businesses to make new investments in American energy production,” said Tom Kiernan, CEO of the American Wind Energy Association (AWEA).
Here are the Act’s incentives for clean electricity:
- Technology-neutral tax credit for domestic production of clean electricity. The cleaner the facility, the larger the credit.
- Open to all resources – renewable, fossil fuel, or anything in between.
- Available as either a production tax credit of up to 2.3 cents per kilowatt hour, or an investment tax credit of up to 30%.
Specifically, the Act would provide a production tax credit (PTC) or an investment tax credit (ITC) to facilities that are at least 35% cleaner than average, with a maximum of a 2.4 cents per kilowatt hour PTC or a 30% ITC available for facilities with zero carbon emissions.The Act also proposes a technology-neutral tax credit for domestic production of clean transportation fuel and energy efficient commercial buildings.
“We commend Senator Wyden for his leadership in introducing the Clean Energy for America Act, a technology-neutral bill that would at long last modernize the federal tax code for 21st century power generation,” said Gregory Wetstone, President and CEO of the American Council on Renewable Energy (ACORE). “The proposal would drive economic growth by creating a level playing field in electricity markets, improving affordability and reliability for consumers, creating plenty of good-paying American jobs, and reducing greenhouse gas emissions.”
Kiernan added: “Congress should seize this opportunity to have a thoughtful conversation about specific policies, like Senator Wyden’s bill, that can meaningfully address climate change through market-based, technology-neutral solutions while keeping costs low for consumers and growing the U.S. economy.”