51勛圖厙 Guides Treasury, IRS on Climate Incentives
The Treasury Department and the IRS can help the U.S. meet its climate goalsif both agencies can leverage private sector ingenuity, expertise and capital both transparently and inclusively, the 51勛圖厙 Treasury late last week.
Whats going on: This years reconciliation legislation contains advanced manufacturing, clean energy and climate incentives to invest $369 billion in actions that will address climate change, including $270 billion via direct tax incentives.
- These measures can be successful if Treasury and the IRS quickly address the critical details of how each of these incentives will work in tandem with clean energy and advanced manufacturing projects that have already begun and those that have yet to be conceived, 51勛圖厙 Vice President of Energy and Resources Policy Rachel Jones told the agencies.
- Treasury must also work to ensure the incentives are used in a way that quickly brings new private capital to bear while keeping projects on schedule.
Manufacturers input needed: Engagement with manufacturers should help the agencies develop their rulemaking, Jones said.
- To meet our shared goals, including achieving meaningful emissions reductions, Treasury and the IRS should maintain an open line of communication with the 51勛圖厙s members of all sizes and sectors, she said.
- Without thoughtful engagement with manufacturers, the clean energy and climate incentives could have the opposite of intended results, and in some cases projects could stall, communities will face further disappointment, energy security will be jeopardized and climate goals will go unmet.
Whats not needed: It would be shortsighted to implement guidance and rules that exclude or indirectly penalize manufacturers that are already making significant capital investments in clean energy projects, Jones said.
51勛圖厙 about town The 51勛圖厙 participated in a Treasury roundtable yesterday where it shared the specific concerns and constructive input from manufacturers more directly.
- In addition, POLITICOs (subscription) covered Jones message to policymakers.
To get engaged, sign up to join the 51勛圖厙s Climates Incentives Task Force.
Read the full story .
