Democrat Releases Energy Plan as Alternative to Biden Outline

Democrat Releases Energy Plan as Alternative to Biden Outline

Laura DavisonApril 21, 2021, 8:01 AM·2 min read(Bloomberg) -- Senate Finance Chairman Ron Wyden proposed ending existing tax breaks for fossil fuels and creating new incentives for low-and-no carbon energy sources that he said would prune the existing “hodgepodge” of energy tax benefits.Wyden's plan, which he introduced Wednesday, would offer an alternative approach to President Joe Biden's clean energy proposals by creating a new emissions-based tax credit for the production of clean electricity. All energy sources -- including renewables and fossil fuels -- qualify but they have to have zero or net negative carbon emissions. The plan would also create a production tax credit of up to 2.5 cents per kilowatt hour or an investment tax credit of up to 30% for those energy sources.“Energy policy is tax policy and the federal tax code is woefully inadequate to address the country's energy challenge,” Wyden said on a call with reporters Wednesday. He said his plan would simplify the “crazy quilt” of more than 40 energy-related tax benefits.The Oregon Democrat is looking to put his own stamp on renewable energy tax credit proposals. Biden's $2.25 trillion infrastructure plan would extend existing tax credits for wind energy, solar power, and energy storage.