Letter on Clean Energy Tax Priorities Sept 2021

A coalition of organizations calls on the U.S. House Ways & Means Committee to implement a comprehensive clean energy tax framework. The proposal emphasizes the need for decade-long policy certainty and specific credits for emerging technologies—such as clean hydrogen, carbon capture, and sustainable aviation fuels—alongside the extension of credits for mature resources like wind, solar, and existing nuclear power to reach net-zero emissions by 2050.

• The authors argue that significant emission reductions depend on technologies not yet fully commercialized, noting that approximately 35% of required cumulative CO2 reductions come from prototype or demonstration phase technologies, and another 40% rely on technologies not yet deployed at scale.
• The proposed tax framework for emerging and enabling technologies includes specific targets: $12 billion for the Section 48C Advanced Energy Manufacturing Tax Credit, a 30% investment tax credit (ITC) for high voltage transmission lines for 10 years, and a 30% ITC for standalone energy storage (including batteries, pumped hydro, thermal storage, and hydrogen) for 10 years.
• Specific credit recommendations for decarbonizing hard-to-abate sectors include a $3/kg production tax credit or 30% ITC for clean hydrogen for 10 years, a blender's tax credit for sustainable aviation fuels starting at $1.50/gallon for a decade, and extending the Section 45Q credit for carbon capture and storage (CCS) for 10 years with rates up to $85 for industrial/power emissions and $175 for direct air capture.
• To support mature technologies and prevent emissions backsliding, the document recommends extending the Section 45 PTC for wind and Section 48 ITC for solar for 10 years, and providing $1 billion annually in production tax credits for existing nuclear facilities to remain operational.
• The coalition suggests several financing mechanisms to maximize deployment, including a "direct pay" option to avoid tax equity financing, allowing the coupling of credits with federal grants, and considering a "credit multiplier" for technologies like advanced nuclear as explored in the Energy Sector Innovation Credit (ESIC) Act of 2021.

APA

Clean Air Task Force (2021). Letter on Clean Energy Tax Priorities Sept 2021. https://www.catf.us/wp-content/uploads/2021/09/Letter-on-Clean-Energy-Tax-Priorities-Sept-2021.pdf

Chicago

Clean Air Task Force. Letter on Clean Energy Tax Priorities Sept 2021. 2021. https://www.catf.us/wp-content/uploads/2021/09/Letter-on-Clean-Energy-Tax-Priorities-Sept-2021.pdf.

Wikipedia

{{cite press release |author=Clean Air Task Force |title=Letter on Clean Energy Tax Priorities Sept 2021 |date=11 September 2021 |url=https://www.catf.us/wp-content/uploads/2021/09/Letter-on-Clean-Energy-Tax-Priorities-Sept-2021.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{cleanairtaskforce2021letter, author = {{Clean Air Task Force}}, title = {{Letter on Clean Energy Tax Priorities Sept 2021}}, publisher = {Clean Air Task Force}, year = {2021}, month = sep, url = {https://www.catf.us/wp-content/uploads/2021/09/Letter-on-Clean-Energy-Tax-Priorities-Sept-2021.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }