The Treasury Department on Friday proposed new tax breaks to boost clean power in low-income areas, as the Biden administration pushes to implement Inflation Reduction Act incentives ahead of the November election.
The proposed rule builds on existing tax breaks for solar and wind development in economically distressed areas.
The plan would offer tax breaks up to 20 percent of a project’s total — if prevailing wage and apprenticeships rules are also met — for geothermal, hydropower, nuclear and other low-carbon technologies in addition to wind and solar. Combustion and gasification technologies, such as carbon capture projects on fossil fuel infrastructure, would not qualify.
In a statement, White House climate adviser John Podesta said the proposed credits target communities “that have been left out and left behind.”
