Fusion Advanced Manufacturing Parity Act
Summary
The Fusion Advanced Manufacturing Parity Act aims to amend the Internal Revenue Code of 1986 to include fusion energy components within the advanced manufacturing production credit (Section 45X). This bill introduces tax credits for the production of fusion energy components, incentivizing domestic manufacturing in this sector. The credit is equal to 25% of the sales price of the component, with a phase-out starting in 2032 and ending in 2035.
Expected Effects
The Act is expected to stimulate investment and innovation in fusion energy technology. It will likely lead to increased manufacturing of fusion energy components within the United States. The phase-out provision suggests a tapering of government support as the industry matures.
Potential Benefits
- Incentivizes domestic manufacturing of fusion energy components.
- Attracts investment in fusion energy technology.
- Potentially creates new jobs in the manufacturing and energy sectors.
- Advances the development of fusion energy as a clean energy source.
- Could reduce reliance on foreign energy sources in the long term.
Potential Disadvantages
- Potential for increased government spending through tax credits.
- The phase-out structure may create uncertainty for manufacturers.
- The effectiveness of the tax credit depends on the actual sales and production of fusion components.
- May disproportionately benefit larger companies capable of large-scale manufacturing.
- Risk that the technology may not develop as quickly as anticipated, leading to wasted tax credits.
Constitutional Alignment
The bill aligns with the General Welfare Clause (Preamble) by promoting energy independence and technological advancement. Congress has the power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States (Article I, Section 8, Clause 1). The bill uses tax policy to encourage specific economic activities, which falls under Congress's enumerated powers.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).