• Lower Energy Costs: The new clean electricity tax credits could save U.S. families up to $38 billion on electricity bills by 2030.
• Clean Energy Growth: The credits will support zero-emission technologies like wind, solar, geothermal, and nuclear while encouraging innovation in future clean energy solutions.
• Job Creation: The program aims to create good-paying jobs, strengthen domestic manufacturing, and boost energy resilience across the U.S.

The U.S. Department of the Treasury and IRS released final rules for the Clean Electricity Investment and Production Tax Credits under sections 45Y and 48E of the tax code. These “technology-neutral” credits will incentivize investments in both existing and new zero-emission technologies.

Why It Matters:

According to the Department of Energy, the credits, combined with provisions from the Inflation Reduction Act and Bipartisan Infrastructure Law, could save U.S. households up to $38 billion by 2030 while supporting a surge in clean energy projects.

Treasury Secretary Janet Yellen emphasized the broader impact:
“The final rules will ensure America’s clean energy boom continues—driving down utility costs, creating good-paying jobs, and strengthening energy security by reducing price shock risks.”

What’s Covered:

The credits apply to clean energy technologies, including wind, solar, hydropower, geothermal, nuclear, marine, and certain waste energy recovery systems. Treasury will release an annual table confirming the qualifying technologies.

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Energy Secretary Jennifer Granholm highlighted the strategy:
“This is President Biden’s industrial strategy in action—accelerating carbon-cutting technologies and boosting energy resilience.”

Key Provisions:

• Projects starting after December 31, 2024, can qualify for the new credits.
• Bonus credits are available for projects that use domestic content or are located in energy communities.
• Full credit eligibility requires meeting wage standards and hiring registered apprentices to ensure clean energy jobs offer strong career growth.

Looking Ahead:

The National Labs are conducting lifecycle emissions analyses for certain biomass technologies to clarify qualification standards. Future changes to the list of eligible technologies will require rigorous review, ensuring transparency and alignment with environmental goals.

The Treasury’s final rules signal a significant push toward affordable, resilient, and sustainable energy for American households and businesses.

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