Clean Electricity Production Credit

Agency: Department of the Treasury

 

Description:

Phased tax credit for zero-emission electricity production

Bill Section:

13701

US Code:

26 USC 45Y

New or Existing:

New

Potential Cost:     

$11,200,000,000

Timeline:     

2025 through phase out beginning in 2032 or the calendar year in which annual GHG emissions from US electricity production are less than 26% of 2022 U.S. electricity sector GHG emissions

 

TCS Notes:

Cost estimate is from FY26-31 (of which $5.2 billion is in FY31). GHG requirements for zero-emission electricity production must be calculated and defined.

Elective Payment and Transferability allowed in certain cases.

Other TCS Resources:

TCS comments on 45Y

TCS Comments to the IRS on Elective Payment

TCS Comments to the IRS on Transfer of Certain Credits