Biden administration finalizes clean electricity tax credits, says Trump should keep in place
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New tax credits are available for companies that generate clean electricity, the Biden administration announced Tuesday, while arguing it would be a mistake for President-elect Donald Trump to try to undo them. The Treasury Department and the Internal Revenue Service released final rules for the clean electricity investment and production tax credits, less than two weeks before Trump is inaugurated. The credits are among roughly two dozen tax provisions in the Inflation Reduction Act,passed in 2022 with only Democrat support. The credits are designed to save families money on their energy bills and accelerate the deployment of clean energy, electric vehicles, energy efficient buildings and low-carbon manufacturing.
The U.S. currently gets more than 40% of its power from clean energy sources like solar, wind, hydropower and nuclear. The centerpiece of Trump's energy policy is “drill, baby, drill," and he has pledged to dismantle what he calls Democrats’ “green new scam” in favor of boosting production of fossil fuels such as oil, natural gas and coal, which cause climate change when they are burned and greenhouse gases are released. Trump has vowed to end subsidies for wind power that were included in the landmark 2022 climate law.
Demand for electricity has accelerated over the past few years in part due to artificial intelligence powered by data centers, electric vehicles and newly built manufacturing facilities. Last year, 60 gigawatts of clean electricity and energy storage like giant batteries were added to the grid, which Energy Deputy Secretary David Turk said was roughly equivalent to adding 30 Hoover Dams in just 12 months.
