Senate G.O.P. Bill Breakdown: Costs and Savings
TL/DR –
The article provides an overview of various proposed changes to clean energy initiatives. These include extending credit for biofuels through 2031 and restricting access for foreign entities to carbon oxide sequestration credit, with an estimated cost of $26 billion and $14 billion, respectively. Meanwhile, a series of other initiatives, such as the alternative fuel vehicle refueling property credit, are slated to be terminated 12 months after enactment, while other credits and programs are projected to be phased down or out, leading to savings that range from $0.1 billion to $179 billion.
Clean Fuel Production Credit
Extend biofuels credit for additional four years till 2031 and implement changes. Projected cost: $26 bil.
Carbon Oxide Sequestration Credit
Limit access for foreign entities. Projected cost: $14 bil.
Partnership Rules for Energy Extraction and Storage Companies
Allow publicly traded companies substantially involved in advanced energy storage, like hydrogen storage, carbon capture, nuclear, hydropower and geothermal energy, to be taxed as partnerships. Projected cost: $3.2 bil.
Methane Emissions and Waste Reduction Rescissions
Postpone for 10 years the implementation of a fee on methane leaks from oil and gas operations and rescind funding for other programs to reduce leaks. Projected cost: $1.4 bil.
Intangible Drilling and Development costs
Alter the tax treatment for certain costs for corporations involved in energy drilling. Projected cost: $0.4 bil.
Refunds for Dyed Fuels
Permit refunds of federal fuel excise taxes paid on fuel that was indelibly dyed for off-road or agricultural purposes.
Expedited Environmental Reviews
Allow project sponsors to speed up environmental reviews for a fee.
Endangered Species Act Recovery Plans Rescission
Revoke Inflation Reduction Act funds.
Diesel Emissions Reductions Rescission
Repeal Inflation Reduction Act funds. Projected saving: -$0.1 bil.
Climate Change Action Plans for State, Local and Tribal Governments
Recall Inflation Reduction Act funds. Projected saving: -$0.1 bil.
Carbon Footprint Labeling for Construction Materials Rescission
Withdraw Inflation Reduction Act funds. Projected saving: -$0.1 bil.
Air Pollution Rescission
Revoke Inflation Reduction Act funds, including for schools. Projected saving: -$0.1 bil.
Energy Efficient Commercial Buildings Deduction
End a tax deduction for energy efficient HVAC, lighting systems, and other improvements for construction 12 months after enactment. Projected saving: -$0.1 bil.
Green and Resilient Retrofit Program Rescission
Withdraw Inflation Reduction Act funds for green housing program. Projected saving: -$0.1 bil.
Other Inflation Reduction Act Rescissions
Related to greenhouse gases, environmental reviews, low-emissions electricity, data collection and hydrofluorocarbons. Projected saving: -$0.2 bil.
Declarations Advertising the Environmental Impact of Products Rescission
Recall Inflation Reduction Act funds. Projected saving: -$0.2 bil.
Sustainable Aviation Rescission
Rescind Inflation Reduction Act funds. Projected saving: -$0.2 bil.
Environmental and Climate Justice Block Grants
Withdraw Inflation Reduction Act funds. Projected saving: -$0.3 bil.
Clean Heavy-Duty Vehicles Rescission
Revoke Inflation Reduction Act funds that help states and localities adopt zero-emission vehicles. Projected saving: -$0.4 bil.
Cost Recovery for Energy Property and Clean Energy Facilities
Eliminate special tax treatment for certain clean energy projects begun after enactment. Projected saving: -$0.4 bil.
Green Federal Buildings Rescissions
Withdraw Inflation Reduction Act funds. Projected saving: -$0.7 bil.
Low-Carbon Transportation Material Grants Rescission
Terminate Inflation Reduction Act funds. Projected saving: -$1.3 bil.
Neighborhood Access and Equity Grant Program Rescission
Withdraw Inflation Reduction Act funds for a grant program to improve walkability, safety and affordable transportation. Projected saving: -$1.7 bil.
Alternative Fuel Vehicle Refueling Property Credit
Terminate 12 months after enactment. Projected saving: -$2.0 bil.
Automaker Fuel Economy Penalties
Projected saving: -$2.8 bil.
Energy Efficient Credit for New Homes
End a tax credit for the construction of new homes that meet energy star standards 12 months after enactment. Projected saving: -$5.4 bil.
Clean Hydrogen Production Credit
Terminate at the end of 2025. Projected saving: -$5.9 bil.
Previously Owned Clean Vehicle Credit
End a tax credit for clean energy used car purchases 180 days after enactment. Projected saving: -$7.4 bil.
Energy Efficient Home Improvement Credit
End a tax credit for energy audits and renovations to improve efficiency 180 days after enactment. Projected saving: -$21 bil.
Clean Electricity Production and Investment Credit
Decrease tax credits for low-emissions electricity sources like wind, solar, nuclear and geothermal power. New restrictions on transferability and the use of components from China. Projected saving: -$29 bil.
Advanced Manufacturing Production Credit
Phase out in 2031, one year earlier than current law, and exclude facilities that use certain components from China and other “foreign entities of concern”. Projected saving: -$50 bil.
Residential Clean Energy Credit
End the tax credit for rooftop solar, geothermal heat pumps and other home devices 180 days after enactment. Projected saving: -$77 bil.
Clean Vehicle Credit
Terminate the $7,500 consumer rebate for electric vehicles 180 days after enactment. Projected saving: -$78 bil.
Qualified Commercial Clean Vehicles Credit
End the credit for companies that buy electric cars or trucks, including businesses that lease the vehicles to consumers, 180 days after enactment. Projected saving: -$105 bil.
Clean Energy Electricity Investment Credit
Decrease tax credits for investments in zero emissions electricity sources, starting in 2026. Projected saving: -$179 bil.
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