Latest news with #InflationReductionActof2022
Yahoo
16 hours ago
- Business
- Yahoo
CGC Asks Visiting U.S. Cabinet Officials To 'Work Together to Solve the Energy Crisis in Alaska and Beyond'
ANCHORAGE, Alaska, June 4, 2025 /PRNewswire/ -- In a full-page ad in the Anchorage Daily News yesterday, the Coalition for Green Capital (CGC), a national green bank that received $5 billion in funding from the federal government last year, warned that "the nation needs more energy" and asked three Cabinet members visiting Alaska to "work together to solve the energy crisis in Alaska and beyond." The ad was in the form of an open letter to Interior Secretary Doug Burgum, Energy Secretary Chris Wright, and Environmental Protection Agency (EPA) Administrator Lee Zeldin. It cited CGC's network partner Spruce Root, a Community Development Financial Institution in the southeastern Alaska. "Investments in such partners are multiplied many times with private capital," the ad said. CGC, however, has faced obstacles. The EPA earlier this year tried to terminate CGC's contract under the Greenhouse Gas Reduction Fund, awarded under the Inflation Reduction Act of 2022, and has frozen the organization's account at Citibank. CGC has challenged the termination in federal district court and won a preliminary injunction, which is now under appeal. "We shouldn't be at cross purposes. CGC has common ground with Administrator Zeldin's Powering the Great American Comeback initiative, and we want to move as fast as we can," said the ad placed by the CGC, which over more than a decade has developed a network of green banks and community lenders. The ad explained the current energy crisis this way: "The grid is a century old, demand is soaring, capacity can't keep up, and Americans are suffering as their utility bills rise. For Alaskans, it's worse. Many communities will never have a grid connection. They're using expensive and unreliable diesel and paying three to five times the national average for electricity." CGC has a solution to financing projects needed to eliminate the crisis, said the ad: "Distributed, smaller-scale projects are often the cheapest and fastest way to add power. That's why Congress asked us to help finance them." The organization called on the three Cabinet officials to work with CGC and bring public and private capital together work together "to unlock capital and enhance U.S. energy infrastructure." About Coalition for Green Capital The Coalition for Green Capital (CGC) uses public-private investing to unlock clean air, clean water, clean jobs and affordable power for all Americans. Green banks are a proven finance model that uses public capital to mobilize private investment in renewable energy, energy efficiency, and other decarbonization technologies. For over a decade, the Coalition for Green Capital has led the Green Bank movement, working at the federal, state, and local levels in the U.S. and countries around the world. For more information, visit: ContactJames K. Glassman: jim@ (202-344-5777)Or Elizabeth Heaton: elizabeth@ (202-445-9858) View original content: SOURCE Coalition for Green Capital Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Journals
2 days ago
- Business
- Business Journals
How businesses can maximize clean energy incentives
In a recent discussion hosted by the Houston Business Journal, Traci Pelter, president and publisher, spoke with Devin Hall, managing partner for energy at Crowe LLP, to delve into the transformative impact of federal clean energy tax credits on businesses and not-for-profits. Key takeaways: 1. Expanding access to clean energy incentives The Inflation Reduction Act of 2022 has broadened the scope of clean energy tax credits, making them accessible to a wider range of entities, including not-for-profit organizations. These incentives come in two primary forms: Investment tax credits (ITCs): Based on the amount invested in qualified clean energy properties Production tax credits (PTCs): Tied to the volume of energy produced by eligible systems Notably, not-for-profits now can benefit through a "direct pay" option, allowing them to receive cash payments equivalent to the credit value, thereby monetizing their investments in clean energy projects. 2. Navigating complex compliance requirements While these credits offer substantial benefits, they come with intricate compliance obligations. Organizations must adhere to specific criteria, such as prevailing wage standards and apprenticeship requirements, to qualify. Hall emphasized the importance of engaging knowledgeable advisers to navigate these complexities and verify proper documentation, especially in anticipation of potential IRS audits. 3. Emerging market for transferable credits A significant development is the emergence of a market for transferable tax credits. Entities with substantial tax liabilities can purchase these credits at a discount, providing liquidity to developers and flexibility to buyers. Hall said this market has expanded rapidly, with estimates suggesting that $25 billion in tax credits were transferred in 2024 alone. 4. Stimulating domestic manufacturing The incentives also are driving a resurgence in U.S.-based manufacturing. Companies are relocating production facilities to the United States to capitalize on these credits, leading to increased investments in solar panel manufacturing, battery storage, and related components. Texas, in particular, is witnessing a surge in such activities, bolstering local economies and job creation. Strategic implications for stakeholders Businesses and not-for-profits aiming to use these tax credits should: Engage expert advisors: To navigate the complex eligibility and compliance landscape Maintain thorough documentation: To substantiate claims and prepare for potential audits Explore credit transfer opportunities: To optimize financial strategies and liquidity Monitor policy developments: To stay informed about evolving regulations and opportunities As the clean energy sector continues to evolve, these tax credits represent a pivotal tool for fostering innovation, sustainability, and economic growth across various industries. Crowe LLP is a public accounting and consulting firm that uses its deep industry expertise to provide audit, tax and consulting services to public and private entities. As an independent member of Crowe Global, one of the largest global accounting networks in the world, Crowe serves clients worldwide. The network consists of more than 200 independent accounting and advisory services firms in more than 130 countries around the world. To learn more, visit
Yahoo
3 days ago
- Business
- Yahoo
In N.C., all eyes on Senator Tillis as IRA tax credits hang in balance
Now that the U.S. House of Representatives has passed a measure to kill nearly every federal tax credit there is to support the clean energy transition, gobsmacked advocates and industry leaders in solar, wind, and electric vehicles are looking desperately to the Senate to amend it. In North Carolina, that means all eyes turn to senior U.S. Sen. Thom Tillis, a second-term Republican up for reelection next year in this steadfast purple state, which is already reaping benefits from the clean energy economy. 'Sen. Tillis is going to be so important, along with other voices,' said Stephen Smith, executive director of the nonprofit Southern Alliance for Clean Energy, 'because he has indicated that we don't want to whipsaw 180 degrees back and forth between approaches to energy policy.' Tillis is among four Senate Republicans who signed an April letter urging a targeted approach to reforming renewable energy tax incentives rather than a wholesale repeal. The four signatories alone could sink the House measure if they joined Senate Democrats in opposing it. The senator's stance, the economic benefits of clean energy, and bipartisan support among voters for solar, wind, and efficiency all give advocates in the state some cause for cautious optimism. So does the reality that solar and batteries are the quickest, cheapest way to solidify the nation's 'energy dominance,' a frequently stated goal of President Donald Trump. 'We need energy today and tomorrow,' said Chris Carmody, executive director of Carolinas Clean Energy Business Association, a trade group. 'Not only are renewables and storage the lowest-cost option, they're also the fastest to build.' The clean energy economy has an intricate foothold in North Carolina. Largely owing to its acres upon acres of solar fields, the state was home to the fourth most solar capacity in the country last year, supporting over 7,000 jobs, according to the Solar Energy Industries Association. And the region doesn't just use solar equipment, it also makes it: Vietnamese panel manufacturer Boviet Solar opened its first U.S. plant in Greenville, North Carolina, in April, with plans for expansion next year that would create over 1,300 local jobs. The Tar Heel State is also a leader in the emerging electric vehicle supply chain, with lithium mines, Toyota's massive battery plant in Randolph County, and EV factories all in the works. Its robust manufacturing sector already produces a number of renewable energy components. In all, North Carolina boasts over 109,000 clean energy jobs, the ninth most in the country, per the national nonprofit E2. The federal tax credits that helped spur this economic activity were first enacted decades ago with bipartisan support. Combined with favorable state policies, that means that wind, solar, and battery storage were on the rise during the first Trump administration and before. But the incentives were undoubtedly supercharged by the Inflation Reduction Act of 2022. The landmark climate law extended the tax credits for large wind and solar projects and rooftop solar through 2032, then tapered them down over several years. It enacted new and expanded incentives for rooftop solar, EV purchases, and energy-efficiency improvements, set to end around the same time. It also included an advanced manufacturing incentive, designed to spur domestic production of minerals, battery components, and more. This 10-year runway of economic certainty sparked a wave of clean energy development across the country. After the passage of the climate law in August 2022, E2 says 27 new projects were announced in North Carolina alone, representing an investment of over $21 billion. Experts say the House Republicans' budget measure, which cleared the chamber by just one vote, would imperil all of these economic gains. The tax credits that benefit large clean energy projects will last until 2028, but only for those that begin construction within 60 days of the bill's passage, an impossibility for most. 'Unless your project is shovel-ready and has gotten every permit, there's no project, in any type of energy, that can go from zero to begin in 60 days,' Carmody said. The rare developer who can begin construction that quickly faces another seemingly insurmountable hurdle: It must document that no component of its project, no matter how small, is linked to a 'Foreign Entity of Concern' such as China. That requirement also applies to the advanced energy manufacturing tax credit, rendering that incentive all but useless even though it's extended beyond 2028. 'It's never been done before for any industry. It's incredibly onerous,' said John Szoka, CEO of the Conservative Energy Network. 'We have a global interconnected economy. We definitely want more manufacturing back in the U.S., and I agree with the president 100% on that. But the way that [provision] is worded, it's almost impossible to meet.' The House bill abruptly eliminates at year's end an array of tax credits for EVs and charging infrastructure. Combined with the poison-pill provision on foreign components in advanced manufacturing, the termination of those incentives could kneecap the state's burgeoning EV sector. 'The bill passed by the House takes a sledgehammer to North Carolina's EV industry and undermines efforts to build secure and reliable access to critical minerals,' said Ben Prochazka, the North Carolina-based executive director of the Electrification Coalition, a national nonprofit. 'Removing these credits would pull the rug out from under the auto and aligned battery industries at a critical time, immediately putting North Carolina jobs at risk,' he said. Individual consumers are dealt perhaps the sharpest blow by the House bill. Like the EV incentives, the credits for rooftop solar, energy-efficiency improvements, and the like would be eliminated at the end of this year. Studies show the resulting spike in demand for gasoline and increased electricity use will raise costs for everyone. Tillis' office didn't respond to a request for comment. But the letter he penned in April — along with Sens. Lisa Murkowski of Alaska, Jerry Moran of Kansas, and John Curtis of Utah — echoes concerns flagged by clean energy advocates and businesses. 'For energy credits that provide a direct passthrough benefit to ratepayers, repeals would translate into immediate utility bill increases, placing additional strain on hardworking Americans,' the senators warn. They advocate a 'balanced' approach to reforming the tax incentives. 'We caution against the full-scale repeal of current credits, which could lead to significant disruptions for the American people and weaken our position as a global energy leader,' the letter says. Noting the 'substantial' investments American companies have already made 'based on the current energy tax framework,' the senators also write that a complete repeal would inject uncertainty into the market — jeopardizing capital allocation, long-term project planning, and job creation. After the passage of the House bill just before Memorial Day weekend, Politico reported that Tillis wasn't backing away from his letter. 'We have a lot of work that we need to do on the timeline and scope of the production and investment tax credits,' the incentives that mostly benefit large wind and solar projects, he told Politico. 'Undoubtedly, there's going to be changes.' Carmody says the comments fit with Tillis' track record. 'We applaud his position so far and his effort to support a stable and predictable tax system here,' Carmody said. 'Sen. Tillis is long acquainted with energy business in North Carolina, and he understands the need for certainty for all kinds of industries.' Polls show Tillis would be on firm political ground if he stood up for the state's clean energy economy. The most recent survey from Conservatives for Clean Energy shows 72% of all voters in North Carolina, including 55% of Republicans, favor politicians who 'support policies that encourage renewable options.' Asked specifically about 'President Trump's American energy dominance policy,' only a quarter of the state's voters, including just under half of Republicans, said they agreed with his plan to 'expand fossil fuel production while limiting … renewable energy sources like wind and solar.' The conservative case for extending renewable energy tax incentives is straightforward, said Szoka, who is a former Republican legislator in the North Carolina House of Representatives. 'All forms of energy generation are subsidized in the United States. Every single one — some that have been around longer than newer technologies,' he said, noting that the oil and gas sector has access to tax deductions worth up to 80% of drilling costs. 'I've got nothing against the oil and gas industry,' Szoka added. But there's no reason it should continue to receive tax benefits while those for renewables are so abruptly axed, he said. Szoka and other conservatives say renewables shouldn't get incentives indefinitely, and they aren't committed to the timelines in the Inflation Reduction Act. They also say the fact that the law was passed with only Democratic votes makes it susceptible to attack from the Republican trifecta. The hope is that a bipartisan approach will be more durable, said Mark Fleming, head of Conservatives for Clean Energy, which covers six Southeast states, including North Carolina. 'I'm very glad to see Sen. Tillis and others in the Senate step up,' to foster a debate about individual tax provisions, Fleming said, 'rather than having a knee-jerk [partisan] reaction.' Still, political tribalism has become a powerful force in policymaking. After all, 21 House Republicans went on record supporting clean energy tax incentives. None voted against the final bill. 'So, that doesn't bode well,' Smith said. 'We are hopeful that Tillis is going to lead and hold his ground firmly.'
Time of India
24-05-2025
- Automotive
- Time of India
How electric vehicles are targeted by the Republican Policy Bill
A tax and policy bill passed by House Republicans on Thursday would deal a serious blow to electric vehicles by repealing many of the subsidies that have been critical to the growth of the technology. If passed by the Senate and signed into law by President Donald Trump, the bill would sharply slow the sales and production of battery-powered cars and trucks in the United States and set back the global effort to address climate change . The measure would gut subsidies for battery manufacturing , incentives for purchases of electric vehicles by individuals and businesses, and money for charging stations that Congress passed during the Biden administration. And it would impose a new annual fee on owners of electric cars and trucks. Republican leaders have said the subsidies they want to repeal were ill-conceived and largely benefited affluent car buyers. They aim to use the money the government saves on the incentives to cut taxes, primarily for high-income households and businesses. Electric vehicles will not disappear from dealerships if the bill becomes law, analysts said, but they are likely to become a lot more expensive than they would have otherwise been. Some automakers may decide to delay plans for new car and battery factories. The rollback of sales incentives will leave the United States even further behind China and Europe, where electric vehicles make up a larger percentage of new car sales and are growing much faster. Most auto executives believe that electric vehicles will eventually displace cars with internal combustion engines. "In the long term, we'll get there," said Jessica Caldwell, head of insights at "It feels like the next decade is going to be bumpy." Elimination of the subsidies, especially a $7,500 tax credit for the purchase or lease of electric cars and trucks that would end at the end of the year for most models, would effectively raise prices for car buyers. Such cars already cost thousands more than gasoline models. The price increases would come on top of those caused by Trump's 25 per cent tariffs on imported cars and auto parts. The legislation also imposes a $250 annual fee on owners of electric vehicles to compensate for lost revenue from gasoline taxes. But the fee is more than double the average yearly fuel taxes that owners of conventional vehicles pay. The Republican legislation would also lead to higher emissions of greenhouse gases and dirtier urban air, environmentalists say. "We will not realise the energy efficiency and health benefits as fast as we could and as fast as other countries are realizing them," said Eleftheria Kontou, an assistant professor at the University of Illinois who studies electric vehicle demand. Technology and sales Cutting off the funding could handicap the United States' chances of competing in electric vehicle technology with its main geopolitical rival. One of the main goals of the Inflation Reduction Act of 2022, the Democratic legislation that Republicans are trying to repeal, was to help finance factories in the United States that could compete with China, which dominates the supply chain for electric vehicles. "It's a big win for China and bad for American manufacturing," said Mike Murphy, a veteran Republican political operative who is CEO of the EV Politics Project, a group that seeks to end what it calls "the needless partisan divide over EVs." The divide is real. Sen. John Barrasso, R-Wyo., a leading opponent of electric vehicles, has called the subsidies in essence "a Biden giveaway" to coastal "elitists who drive electric vehicles." If Republicans follow through on plans to repeal these incentives, automakers will sell 8 million fewer electric vehicles in the United States by 2030 than they would have otherwise, according to research by Jesse Jenkins, an assistant professor at Princeton University. Instead of 40 per cent of new car sales in 2030, electric vehicles would account for 24 per cent, he estimated. But analysts still expect electric vehicle sales to grow. Battery technology is improving rapidly while prices are falling, making electric vehicles more affordable and practical. A study by the International Council on Clean Transportation, a nonprofit research organization in Washington, found that by the end of the decade, electric vehicles capable of traveling more than 300 miles on a charge would cost the same as or less than similar cars with combustion engines. Batteries that can charge in minutes and let a vehicle travel 600 miles on a charge are edging closer to reality. BMW said this week that it had begun testing a prototype equipped with an advanced battery developed by Solid Power, a Colorado company. The technology, known as solid state, allows cars to be charged faster and travel farther. Mercedes-Benz has been testing a similar technology. Still, the United States trails far behind other countries in electric vehicle sales. Chinese drivers bought 3.3 million from January through April, a 35 per cent increase from a year earlier, according to Rho Motion, a research firm. Europeans bought 1.2 million, a 25 per cent rise. In North America, sales in the first four months came to 600,000, a 5 per cent increase. Lower sales would mean fewer Americans employed in the production of electric vehicles, batteries and charging equipment. The International Council on Clean Transportation estimates that if left in place, the Inflation Reduction Act would create 118,000 jobs through 2030. All those jobs, plus 12,000 more, will be lost if the legislation is repealed, according to the council's research. Michigan, Texas and Tennessee would suffer the biggest job losses. "The IRA said 'yes' to American manufacturing and American jobs," said Peter Slowik, one of the authors of the council's study. "Now we're taking that away." Of course, the bill could change significantly in the Senate, where some Republicans have expressed reservations about a wholesale repeal of the Inflation Reduction Act. Much of the money from that law is going to states where majorities voted for Trump. But the politics of tax and clean energy policy are complicated. More than a dozen Republican representatives whose districts include factories that benefit from subsidies had said they would not support eliminating those subsidies. Yet just two Republicans voted against the House bill after Trump pressured representatives to advance his agenda. Raw materials The House tax bill's changes would undercut new factories and mining projects by quickly phasing out incentives to manufacture batteries and mine and refine raw materials like lithium. Credits would expire in two years for projects that used Chinese know-how. It is very difficult for battery makers and mineral refiners not to use some Chinese technology, industry representatives said. "This bill as currently written would be devastating for critical mineral production and refining in the U.S.," Albert Gore III, executive director of the Zero Emission Transportation Association, told reporters this month. Low prices are the biggest problem for lithium producers right now, said Keith Phillips, the CEO of Piedmont Lithium, which is developing a mine in North Carolina. "Prices are going to have to rise before the project would become economic," he said. But if the federal tax credits are eliminated, Phillips added, "they will have to rise that much more." The legislation would be a setback for a factory that Ford Motor is building in Marshall, Michigan, with technical expertise from CATL, a Chinese company that is the world's largest maker of electric vehicle batteries. The factory will produce batteries that are significantly less expensive than other batteries made in the United States. "The production tax credit spurred American investments and jobs, which could now be at risk," Ford said in a statement. But the electric vehicle industry was growing before the Inflation Reduction Act and can survive without government help, said Levi McAllister, a partner at the law firm of Morgan Lewis who represents automakers and others in the industry. Companies designed their business plans with an awareness that subsidies could disappear someday, McAllister said, adding, "Everybody who was active in this industry knew which way the wind was blowing."
Yahoo
22-05-2025
- Business
- Yahoo
Lawmakers move forward on controversial budget cuts that could impact household energy bills: 'I don't think it's fair'
The House Ways and Means Committee recently unveiled its contribution to budget reconciliation negotiations, placing popular clean energy tax credits and green initiatives on the chopping block. On May 12, the House Ways and Means Committee put forward a 389-page document outlining proposed budget cuts amid ongoing negotiations. Policy analysis firm the Rhodium Group's initial review of the proposal revealed deep cuts to a broad swath of energy-related appropriations. The proposal largely targeted clean energy provisions introduced in or strengthened by the Inflation Reduction Act of 2022. House Speaker Mike Johnson acknowledged the possibility of clean energy spending cuts back in September. At the time, Johnson suggested using "a scalpel and not a sledgehammer" — but Johnson subsequently revised his position to "somewhere between a scalpel and a sledgehammer." The Rhodium Group has yet to fully analyze the Committee's proposed cuts. However, the organization likened its impact to that "of a full repeal of the energy tax credits initially extended and expanded in 2022," potentially raising energy costs by 7% for the average American household in 2035. The Committee proposed abruptly and comprehensively ending most "clean vehicle" tax credits by the end of 2025. According to Utility Dive, the package also targets "the investment and production tax credits for nuclear power, wind, solar, batteries, geothermal and other clean energy technologies after 2028," before axing them "completely after 2031." Ultimately, myriad IRA provisions are in jeopardy. The Rhodium Group cited "extremely complicated and unprecedented implementation rules," which would further disrupt investment and development due to fiscal uncertainty engendered by the proposal. The measures would still have to be voted on in the House and then proceed to the Senate before reaching the President, with the Senate the most likely place for many clean energy provisions to be saved, but nothing is certain until the votes are cast. The Inflation Reduction Act provided comprehensive fiscal support for a cleaner future, incentivizing individuals and businesses alike to transition to renewable energy. The Economic Policy Institute lauded the IRA's impact in August 2023, observing that the "fiscal support it provides for [clean energy] investments admirably matches the scale of the decarbonization challenge in front of us." Its subsidies benefited American "businesses, households, and even sub-national governments," saving households money and incentivizing greener commerce. The proposal's "sledgehammer" approach will not only stifle commerce but threaten to stall the adoption of electric vehicles and other subsidized green tech. Should the government continue to give tax incentives for energy-efficient home upgrades? Absolutely No Depends on the upgrade I don't know Click your choice to see results and speak your mind. Per a May 13 Politico report, some lawmakers were openly skeptical of the proposed cuts. The timeline was "too short for truly new technologies," Sen. Kevin Cramer said. "I don't think it's fair to treat an emerging technology the same as a 30-year-old technology." Sen. Shelley Moore Capito likened the proposal to a "blanket" repeal of the IRA's investments. "There has been job creation around these tax credits," Capito noted. On May 13, the League of Conservation Voters issued an open letter urging lawmakers to reject the bill. Describing it as a "retroactive tax increase," the group warned it would result in "skyrocketing electricity costs, job losses, the shuttering of manufacturing plants, and undermine our global competitiveness." Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
