A Look at Climate Provisions in Reconciliation Bill

The federal budget reconciliation bill moving through Congress contains roughly $370 billion to promote clean energy and reduce emissions. (See related stories in this Leadership Briefing). Members should be aware that the bill, according to media reports, contains the following climate-related provisions:

• Tax credits for clean energy technologies, such as existing nuclear power plants and advanced nuclear technologies, clean hydrogen, carbon capture and storage, as well as wind and solar power;
• Tax incentives for buyers of North American-built electric vehicles (up to $7,500 in federal tax credits); and
• A fee program to fine businesses that emit methane — the primary component of natural gas — above federal limits.

With respect to manufacturing, OMA Connections Partner RSM notes the bill provides new funding allocations and modifications for the section 48C advanced energy project credit, while adding a new production tax credit for manufacturers of certain solar and wind energy components. 8/8/2022