Biden administration moves beyond wind, solar tax credits

The Biden administration has proposed expanding tax credits to encompass a broader array of clean energy technologies, including nuclear fission and fusion, as part of efforts to combat climate change, Reuters reported on Wednesday.

The new guidance, announced by the Treasury Department, will extend the Clean Electricity Production Credits and Clean Electricity Investment Credits from 2025 onward, replacing the previous wind and solar incentives.

These technology-neutral credits aim to facilitate the transition to a net-zero-emission power sector by 2035. Eligible technologies under the proposal include marine energy, hydropower, geothermal, and certain forms of waste energy recovery, along with nuclear options.

Treasury Secretary Janet Yellen emphasised the significant investment already spurred by the Inflation Reduction Act (IRA) and highlighted the potential for further clean energy development through these credits.

However, concerns have been raised by environmental groups about the possibility of supporting controversial energy sources.