S.1721 - Energy Freedom Act (119th Congress)
Summary
The Energy Freedom Act aims to repeal various tax credits and incentives related to green energy. This includes repealing credits for energy-efficient home improvements, clean energy, clean vehicles, alternative fuels, sustainable aviation fuel, renewable electricity production, carbon oxide sequestration, clean hydrogen production, and advanced manufacturing. The bill also seeks to repeal the tax on petroleum and sections related to elective payments for energy property.
Expected Effects
If enacted, the Energy Freedom Act would eliminate numerous financial incentives designed to promote renewable energy and energy efficiency. This could lead to decreased investment in these sectors and potentially increase reliance on traditional energy sources. The repeal of these tax subsidies would likely shift the financial landscape for energy-related projects and consumer choices.
Potential Benefits
- Potentially lower tax burden for some taxpayers due to the elimination of specific energy-related tax credits.
- May lead to a more level playing field between traditional and renewable energy sources, allowing market forces to dictate energy production.
- Could reduce government spending and potentially decrease the national debt.
- May simplify the tax code by eliminating numerous specific credits and deductions.
- Potentially stimulate innovation in the energy sector by removing subsidies and encouraging competition.
Most Benefited Areas:
Potential Disadvantages
- Reduced investment in renewable energy and energy efficiency technologies, potentially slowing the transition to a cleaner energy economy.
- Increased reliance on fossil fuels, potentially exacerbating climate change and environmental pollution.
- Higher costs for consumers who would have benefited from the repealed tax credits for energy-efficient products and clean vehicles.
- Potential job losses in the renewable energy sector.
- May hinder efforts to meet climate goals and international agreements.
Constitutional Alignment
The bill's focus on tax policy falls under the purview of Congress's power to lay and collect taxes, duties, imposts, and excises, as outlined in Article I, Section 8, Clause 1 of the Constitution. The Constitution grants broad authority to Congress regarding taxation and spending. The repeal of existing tax credits does not inherently violate any specific constitutional provision. However, the potential impact on environmental protection and interstate commerce could be subject to further scrutiny under other constitutional clauses.
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).