This week, the proposed Congressional bill in the United States will support climate change actions by increasing federal tax incentives. To promote economic recovery, it will also include measures to support solar energy, energy storage, electric power, other renewable energy, and the future will be in the United States. Each region invested 1.5 trillion US dollars for infrastructure construction. The bill will be voted before July 4 to decide whether to pass.
Congressman Mike Thompson is the chairman of the House Ways and Means Committee, one of the oldest committees in the United States, mainly responsible for review and taxation. On June 25, Thompson received support from 47 Congressional Democrats and introduced the existing Renewable Energy and Efficiency Growth (GREEN) Act into the Advancement Act.
He said that the Green Act (GREEN Act) will promote the widespread application of clean energy technologies and zero-emission vehicles through US federal tax incentives.
The part of the bill on tax credits quickly received rapid response and praise from the American Solar Energy Industry Association (SEIA) and the American Renewable Energy Council (ACORE).
SEIA stated that the bill would extend solar ITC by 30% for 5 years to 2025, drop to 26% by 2026, 22% by 2027, and 10% by 2028, until industrial and commercial and large solar power plants The project tax credit is completely withdrawn, and only residential projects enjoy this welfare policy, which will bring more investment and create more business and employment opportunities for the US solar industry.
In addition, the GREEN Act also provides ITC with a direct payment option, which means that stakeholders including the solar energy and energy storage industries can treat it as a cash payment rather than deduct it from the tax bill later. The direct debit option will be set to 85% of the total value.
Abigail Ross Hopper, chief executive officer and president of SEIA, believes that this is the critical moment for the US economy to recover from the epidemic while addressing inequalities between the energy economy and climate change. Gregory Wetstone, President and CEO of ACORE, believes that the bill "will provide a stable and effective policy platform for the deployment of clean energy in the next five years." He also said that in addition to the extension of solar and wind energy and other ITC, direct offset will help to stimulate the full potential of renewable energy investment, and looks forward to working with Congress to promote the implementation of policies to benefit the future of renewable energy in the United States.
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