The Biden administration on Tuesday finalized guidance that would expand tax credits that previously applied only to wind and solar power to a variety of other energy technologies.
Under new guidance issued on Tuesday, producers of electricity from sources such as nuclear, geothermal, hydro and ocean wave energy will also be able to claim credits.
The move isn't necessarily surprising, since the Inflation Control Act of 2022 made the tax credit applicable to any energy source that is “technology neutral,” meaning its carbon emissions are below a certain threshold.
But Biden's move this week formally applies it to those specific technologies, excluding other power sources such as biomass energy facilities that are still under construction.
The rules say any future changes to the list of energy sources that can qualify for the credits will require an analysis prepared by the Department of Energy's national laboratories.
“The final rule issued today will help ensure America's clean energy investment boom.”
Continuing – Lowering utility costs for American households and small businesses;
Strengthening energy security with high-paying construction jobs and strengthening U.S. energy security
resilient to price shocks,” Treasury Secretary Janet Yellen said in a written statement.
The guidance is one of several last-minute actions taken by the Biden administration to try to get as much of its agenda across the finish line as possible before the Trump administration takes office.
Ultimately, that administration may seek to further change the guidance. It also could seek to eliminate or weaken tax credits more broadly, with support from Congress.
