The $369 billion climate and tax bill would affect every aspect of U.S. energy production, with incentives for producers and consumers to move away from fossil fuels.
Seven Key Provisions in the Climate Deal , The climate and tax deal announced by Senate Democrats on Wednesday would pump hundreds of billions of dollars into programs designed to speed the country’s transition away from an economy based largely on fossil fuels and toward cleaner energy sources. The legislation, called the Inflation Reduction Act of 2022, is a far cry from the ambitious multi-trillion-dollar domestic policy and tax proposal that President Biden sought and that Democrats in Congress spent more than a year laboring to pass. What remains is a downsized but still significant package, born of compromise between Democratic Senator Joe Manchin III of West Virginia and Senate Majority Leader Chuck Schumer, Democrat of New York.
Here’s a quick look at what’s in the bill, which Democrats hope to muscle past Republican opposition in the Senate as early as next week. The deal would provide billions of dollars in tax credits over 10 years for companies that build new sources of emissions-free electricity, such as wind turbines, solar panels, battery storage, geothermal plants or advanced nuclear reactors. Previously, Congress had offered short-term credits for wind and solar that often expired after a year or two. The credits in the new bill cover any zero-carbon technology and would last for at least a decade, giving companies more certainty.
The bill also expands a tax credit for companies that capture and bury carbon dioxide from natural gas power plants or other industrial facilities before the gas escapes into the atmosphere and heats the planet — a technology rarely used today because of high costs. It would also provide tax breaks to keep existing nuclear plants running. More than 13 reactors have closed nationwide since 2013, and emissions often rise when they do because they tend to be replaced by fossil fuels. It would also provide grants and tax credits for states and electric utilities to reduce carbon dioxide emissions.
Source: This news is originally published by nytimes