Manufacturers are leading the way in addressing climate change, but to help them continue making strides, the government must do its part, the NAM told the Treasury Department late last week.
What’s going on: The $270 billion in tax incentives contained in the recently passed reconciliation bill “create the potential to put the nation’s climate goals within reach, if they can leverage private sector ingenuity, expertise and capital and be implemented quickly, with transparency and inclusivity,” NAM Director of Energy and Resources Policy Chris Morris wrote.
Action items: To that end, there are several moves Treasury and the IRS should make immediately, Morris said. These include the following:
- Coordinating with industries and companies that have already started clean-energy initiatives to prevent these entities’ penalization in the drawing up of new department-issued rules
- Providing “clarity and flexibility” on the implementation of the tax credits, including assurance of credit qualifications to projects breaking ground prior to final-rule issuance
- Ensuring the definition of “vehicle” includes aircraft, boats, trucks and other modes of transport
- Considering a nationally recognized certification for electric vehicle charging stations to ensure efficiency and safety in EV charging infrastructure
- Deploying more carbon capture, use and storage technologies
- Ensuring that hydrogen standards in the new Clean Hydrogen Production Credit “do not seek to limit clean hydrogen opportunities based on fuel source”
Reaffirming commitment: The NAM urged Treasury and the IRS last month to implement incentives quickly, transparently and effectively.