Renewable Energy Scorecard

The benefit of the Biden subsidy

The 2022 Inflation Reduction Act was the signature legislative effort of the Biden administration. A key element was long term tax credits for investments in a wide portfolio of technology that reduced green house gases. Earlier tax and production credit initiatives had effectively subsidized the development of wind and solar projects.

The expanded version extended tax credits to nuclear or any technology that demonstrably reduced carbon emissions. When fully implemented the program should reduce carbon emissions between 43-73 percent from 2022 levels. Because of its broad compass and support by mainstream power producers, the program should survive conservative attempts to cut government spending to offset extended tax cuts. If fully disbursed the program could cost $220 billion over its ten-year span. (NYT 010825).

Trump’s recent unfounded assault on wind energy, asserting that “windmills” kill birds, cause cancer, and generate high-cost energy s likely to be bluster. The odds are that bipartisan mainstream support will preserve the program.

As the world suffers from climate change related extremes, flood, fire, and drought, aggressive remediation through tax credit incentives will be a welcome legacy of the Biden years offsetting the impending “drill baby drill” policy regression of the Trump era.