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TC.022
The baseline tax system would not allow credits for particular activities, investments, or industries. Instead, it generally would seek to tax uniformly all returns from investment-like activities. In contrast, the Tax Code provides a credit for certain electricity produced from wind energy, biomass, geothermal energy, solar energy, small irrigation power, municipal solid waste, or qualified hydropower and sold to an unrelated party. Facilities that begin construction in 2017 receive 80 percent of the credit, facilities that begin construction in 2018 receive 60 percent of the credit, facilities that begin construction in 2019 receive 40 percent of the credit, and facilities that begin construction in 2020 or 2021 receive 60 percent of the credit. The full credit amount is available for projects that begin construction after 2021, but the full rate is dependent on prevailing wage and apprenticeship requirements. Two additional bonus credits worth 10 percent each are available for projects that meet domestic content requirements and projects located in energy communities. Starting in 2025, the credit becomes a technology neutral credit, and it begins to phase out as early as 2034.
This chart shows obligations for the program by fiscal year. All data for this chart was provided by the
administering agency and sourced from SAM.gov, USASpending.gov, and Treasury.gov.
For more information on each of these data sources, please see the
About the data page.
OMB is working with the U.S. Government Accountability Office (GAO) and agency offices of inspectors general to include links to relevant oversight reports. This section will be updated once this information is made available.
