Treasury Department Expands Tax Credits to Bolster Renewable Energy Production, Lower Energy Costs

Washington D.C. — Today, the Department of Treasury finalized clean energy tax credit guidance to strengthen renewable energy production, lower costs for families, and reduce carbon emissions.

Today’s announcement provides clarity to the Investment Tax Credit, which provides up to 30 percent of a project’s total cost in tax credits for clean energy projects, and expands eligibility to additional technologies including offshore wind components and geothermal and air-source heat pumps. This guidance will help continue to shift the energy sector away from dirty, expensive fossil fuels, and spur investments in more affordable, reliable renewable energy sources. 

In response to the final rule, Sierra Club Chief Energy Officer Holly Bender released the following statement: 

“Today’s announcement continues to fulfill the Biden Administration’s commitment to clean air, lower bills, and reliable access to clean energy. Since its passage, we’ve already witnessed the Inflation Reduction Act’s success in the renewable energy sector; these expanded tax credits follow the same winning approach, bolstering the clean energy transition and supporting the health and wellbeing of the communities across the country.

“As we celebrate another win for our communities, we must make one thing clear: if a future administration reverses this progress, our communities will suffer. We’ll experience dirtier air, higher energy bills, and the promise of clean energy jobs could vanish. Today’s announcement marks a step forward in our transition to renewable energy, and we cannot afford to go back to dirty, expensive fossil fuels.”