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
- Senate passed a budget resolution on Friday, February 21 (52-48) to serve as a backup plan in case a larger House budget resolution doesn’t get passed.
- On February 25, the House voted 217-215 on their budget resolution, which sends the bill to the Senate for a vote. If approved, it would establish the vehicle for further legislation on tax cuts, energy policy, and border security.
IMPACT
- The Senate resolution is only 62 pages long and includes $85 billion annually over four years for tighter border security, deportation of illegal immigrants, energy deregulation, and increased military spending. No tax cuts or changes to the IRA are included.
- The House resolution could have as much as $4.5 trillion in tax cuts and some reductions to the IRA tax credits, particularly related to electric vehicles.
- The American Action Forum has a good review of the two bills as of last week: https://www.americanactionforum.org/insight/the-fy-2025-budget-resolutions-comparing-the-house-and-senate/
GUIDANCE
(Provided by CEO Josh Howes)
- A full repeal of the IRA still seems highly unlikely as the Republican support isn’t there for such a measure. Any projects that are currently in progress or soon to be under construction should continue as planned. Any reductions of tax credits would likely be set for a future date, so our prior advice to get things done during this window of opportunity still stands.
Energy Tax Incentives In the News:
- The disbursement pause in the Executive Order (EO) titled “Unleashing American Energy” should have no impact on tax credits, Medium
- An Update on Energy Tax Credits for Schools, UndauntedK12
- Clean energy stakeholders descend on Capitol to lobby for IRA tax credits, UtilityDive
- 133 U.S. Mayors and Local Elected Officials Representing 25 Million Americans Call on Congress to Preserve Clean Energy Tax Credits & Protect Economic Benefits for Local Communities, Climate Mayors