Forbes: "Squaring Off between Carbon Taxes and Renewable Energy Incentives"
RFF Fellow Aaron Bergman offers his thoughts on the role technologies can play in decarbonization strategies.
Other major credits include a zero-emission nuclear power production tax credit under section 45U and a new clean fuel production credit under section 45Z.
“Tackling climate change is not just a problem of incentives, but also a problem of technology,” Aaron Bergman of Resources for the Future, and former lead for Macroeconomics and Emissions at the U.S. Energy Information Administration, told Tax Notes. “Moving technology costs down is vital,” he explained.
“The IRA attempts within the current political context to create better incentives encouraging people to use cleaner energy, and to have better technology that will enable us to have greater decarbonization in the future,” Bergman added.
The credits extend for at least 10 years, ensuring that clean energy producers won’t need to worry whether lapsing credits will be renewed in the tax extender process.
