U.S. House Passes Inflation Reduction Act

H.R. H.R. 5376, which was approved by the U.S. Senate in August 2022, was passed by the U.S. House of Representatives with a 220-207 vote. The bill modifies and extends tax credits for electricity production from renewable resources through 2024, specifically for wind and biomass, geothermal, solar, landfill gas and trash, as well as qualified hydropower and marine and hydrokinetic resource. It also extends credits for investment into certain energy properties, including solar, fuel cells and waste energy recovery.

H.R. 5376, among other tax credits, has been created. 5376 has created new tax credits for the production and investment in clean electricity generation facilities, energy storage technology, domestic production and export of qualified solar and wind components.

The bill provides funding to Department of Energy (DOE), for interregional, and offshore wind electricity transmission planning and modeling. It also allows for the lease of federal land within the Outer Continental Shelf to support offshore wind development. The Department of Interior may issue leases, easements, and rights-of way in the OCS for the production, transport, storage, and transmission of energy from sources other that oil and gas (e.g., offshore winds energy sources).

“In addition to extending and expanding a variety of critical energy tax incentives, this piece of legislation will ensure that all utilities can benefit from these incentives, which encourage the critical energy investments they need to continue to use cleaner generating technologies,” comments Joy Ditto, American Public Power Association’s president and CEO. “In the end, this makes these incentives fairer and more effective.”

Additionally, the bill expands OCS’s definition to include land within the U.S. Exclusive Economic Zone and adjacent to any territory. DOI is authorized to sell wind leases that are located in such areas if the leases comply with specified criteria.

“The most transformational clean energy package in history is now one step closer to becoming law. The House passage shows that America is prepared to lead the world in the fight against climate change by investing in our communities and workers,” comments Abigail Ross Hopper, president and CEO of the Solar Energy Industries Association. “The Inflation Reduction Act will drive historic investments in clean energy deployment and manufacturing which will help create millions of new, well-paying careers. In the face of a global energy crisis and rising inflation, the measures in this bill will strengthen America’s energy security by boosting production here at home, all while lowering prices for families through investment in historic levels of low-cost, reliable clean energy.”

The bill provides funding for the Bureau of Land Management to finance water supply projects, projects to cover water conduit facilities with solar panels, drought mitigation in western States.

Image: “Installing solar panels” by OregonDOT is licensed under CC BY 2.0