More than 110 Companies, NGOs and Labor Unions Support Clean Energy and Industrial Provisions in Pending Budget Reconciliation Legislation – Request that Key Policies be Retained in Subsequent Iteration of Package
January 31, 2022 | Blog
On January 31, more than 110 companies, non-profits and labor unions, including several members of the Carbon Capture Coalition, sent a letter to House and Senate Democratic leadership noting the broad support for the clean energy and industrial tax provisions in pending budget reconciliation legislation. The letter goes on to request that these key components, including critical enhancements to the federal Section 45Q tax credit, remain part of any subsequent iteration of the package.
While further negotiations may change the overall size and scope of budget reconciliation legislation, it remains clear that progress toward reaching U.S. climate targets by midcentury hinges upon the inclusion of clean energy and industrial tax components currently in the Build Back Better Act (BBBA). Current text includes several measures to bolster the 45Q tax credit to help reach the full emissions reduction potential of the program: a multi-year extension of the commence construction window; a direct pay option at full value of the credit; enhanced credit values for industry, electric power and direct air capture; and significantly lowered annual CO2 capture thresholds to expand eligibility.
To that end, Congress now has the historic opportunity to rebuild and retool America’s domestic energy, industrial and manufacturing sectors, enabling our economy to achieve net-zero emissions by midcentury. Advancing this tax package will deliver an essential down payment on deployment to meet critical emissions reduction targets, while retaining and creating high-wage jobs and fostering domestic energy and industrial production.