Senate Approves Bill That Makes Energy Tax Credits Available To Public Power
August 7, 2022
by Paul Ciampoli
APPA News Director
August 7, 2022
The U.S. Senate on Aug. 7 approved legislation that would extend and expand various energy tax credits, including by making them available for projects owned and operated by tax-exempt entities, including public power. The House is scheduled to take up the bill on Aug. 12.
The bill passed the Senate Sunday afternoon with a 50-50 party-line vote, with the tie broken by Vice President Kamala Harris. The vote on final passage came after the Senate worked overnight Saturday, voting on 36 amendments and procedural motions. All but two failed, and neither of the two would affect public power.The change related to energy tax credits is strongly supported by the American Public Power Association (APPA).
A last-minute change to the bill would protect these tax credit payments to public power utilities from the current 5.7 percent “Joint Select Committee” sequestration that is scheduled to remain in effect through 2031.
On Aug. 12, the House will vote on H.R. 5376, a bill which originally passed the House as the Build Back Better Act (BBBA), but which was renamed during Senate consideration as the Inflation Reduction Act (IRA).
The bill also includes increased funding for energy-related programs and to speed up much-needed siting and permitting of energy infrastructure.