Biden administration sets new clean energy funding framework
The Biden administration has finalized tax rules, opening avenues for non-profits to develop low-carbon projects.
Brian Dabbs reports for E&E News.
In short:
- Nonprofits, for the first time, can receive federal cash up to 30% of a project's value for building clean energy systems.
- The Inflation Reduction Act's direct pay provision aims to democratize decarbonization efforts, especially in disadvantaged areas.
- Some restrictions remain, posing eligibility challenges for certain partnerships and requiring complex navigation of new tax codes.
Key quote:
The rules “are going to go a long way toward reducing carbon emissions and promoting domestic chip manufacturing.”
— Senate Finance Chair Ron Wyden (D-Ore.)
Why this matters:
The policy incentivizes the creation of renewable energy infrastructure in historically marginalized communities, which could lead to improved health outcomes due to reduced pollution. This strategic tax code alteration links local development to the broader national effort of sustainable economic growth and clean energy transition.
Joel Olson: Uncertainty over climate impacts is no reason to shy from a modest incentive to break our fossil fuel addiction.
