Blue Energy Group, a leading national tax and engineering firm, closely monitors activity and developments related to energy tax incentives. This newsletter is to inform you of updates and their impact so you can confidently prepare for your next energy efficiency or renewable energy project.
UPDATES
Four Republican senators wrote a letter addressed to Majority Leader John Thune on April 9 to “caution against the full-scale repeal of current credits” in the Inflation Reduction Act (IRA). The senators who signed the letter are Lisa Murkowski of Alaska, Jerry Moran of Kansas, Thom Tillis of North Carolina and John Curtis of Utah. Specifically, their letter was written to “emphasize the importance of maintaining a stable and predictable tax framework to promote domestic energy development.” These tax credits support investments in renewable energy installations, battery manufacturing, energy efficiency improvements and the production of alternative fuels. It’s not known exactly which tax credits these four Senators would or would not be willing to repeal, but this show of support makes a full-scale repeal unlikely.
These senators join a group of 21 Republicans in the House of Representatives who wrote a similar letter last month to the House speaker also defending the tax credits. Furthermore, this Senate letter is particularly important to the preservation of the IRA because Senator Tillis serves on the Senate Finance Committee. This committee will play a key role in the reconciliation process as Congress pieces together a tax cut package that will likely include some changes to the IRA.
IMPACT
Congress returns from recess next week. It is the goal of the leaders of both the House and Senate to have the reconciliation package done by Memorial Day. As we know, Congress rarely hits their deadline. Since this is a self-imposed deadline and not a hard deadline like an impending government shutdown, it is not likely that they will get their tax package done by Memorial Day. However, we hope for the best that this process doesn’t drag out too much longer than that. Regardless, we should begin hearing some ideas about what the changes to the IRA might look like as early as next week.
GUIDANCE
(Provided by CEO Josh Howes)
Now is still the time to take action. With Congress coming back from recess next week, your voice matters more than ever right now. Call your House Representative and Senators today to express your support for keeping these clean energy incentives in place. Congressional offices are hearing from lobbyists—make sure they hear from voters, too.