House Democrats push clean energy tax incentives in infrastructure package

More than 180 House Democrats are urging leadership to include important clean energy, energy efficiency and clean transportation tax incentives in the plan.

The lawmakers – led by Reps. Earl Blumenauer (D-OR), A. Donald McEachin (D-VA), Nanette Diaz Barragán (D-CA), Jason Crow (D-CO), and Mike Levin (CA) – argue that these provisions will not only help the clean energy sector recover from the COVID-19 pandemic, but also play a key role in combating the climate crisis. In the face of the new report from the U.N.’s Intergovernmental Panel on Climate Change showing a ‘Code Red’ in the climate fight, enacting these clean energy incentives take greater urgency.

“These incentives will play a critical role in America’s economic recovery, alleviate some of the pollution impacts that have been borne by disadvantaged communities, and help the country build back better and cleaner,” said the House lawmakers in their letter Tuesday to Speaker Pelosi and Leader Hoyer. “We look forward to working with you to include a stable, predictable, and long-term clean energy, energy efficiency, and clean transportation tax platform in the infrastructure package this year.”

The letter comes as the Senate begins to consider a $3.5 trillion budget resolution with reconciliation instructions paving the way for enactment of a stable, predictable, and long-term tax platform, with a direct pay option, that:

• Provides long-term extensions and expansions to the Production Tax Credit and Investment Tax Credit to meet President Biden’s goal of a carbon pollution-free power sector by 2035.
• Extends and modernizes tax incentives for commercial and residential energy efficiency improvements and residential electrification.
• Extends and modifies incentives for clean transportation options and alternative fuel infrastructure.
• Supports domestic clean energy, energy efficiency, and clean transportation manufacturing.

The clean energy sector was projected to add 175,000 jobs in 2020 but the COVID-19 pandemic upended the industry and roughly 300,000 clean energy workers were still out of work in the beginning of 2021. Lawmakers argue that the clean energy, energy efficiency, and clean transportation tax incentives will help bring these workers back, while supporting strong labor standards and domestic manufacturing.

“The importance of clean energy tax policy is made even more apparent and urgent with record-high temperatures in the Pacific Northwest, unprecedented drought across the West, and the impacts of tropical storms felt up and down the East Coast,” the lawmakers added.