Treasury Proposes Expanded Tax Breaks for Clean Power Projects in Low-Income Areas Ahead of November Election

The Treasury Department has proposed a rule to expand tax breaks for clean power in low-income areas, as part of the Biden administration’s efforts to implement the Inflation Reduction Act ahead of the November election. The proposed rule would offer tax breaks up to 20 percent of a project’s total if prevailing wage and apprenticeships rules are also met. Combustion and gasification technologies, such as carbon capture projects on fossil fuel infrastructure, would not qualify. The tax breaks target communities that have been left out of the mainstream.