H.R.1752 - Technology for Energy Security Act (119th Congress)
Summary
H.R. 1752, the "Technology for Energy Security Act," proposes to amend the Internal Revenue Code of 1986 to extend the energy credit for qualified fuel cell property. Specifically, it changes the expiration date of the energy credit from January 1, 2025, to January 1, 2033. The amendment would apply to property where construction begins after December 31, 2024.
Expected Effects
The primary effect of this bill, if enacted, would be to incentivize investment in qualified fuel cell property for an extended period. This could lead to increased development and deployment of fuel cell technology. It also provides longer-term certainty for businesses and investors in the fuel cell sector.
Potential Benefits
- Increased Investment in Fuel Cell Technology: The extended tax credit would likely encourage more companies to invest in fuel cell development and deployment.
- Job Creation: The growth of the fuel cell industry could lead to the creation of new jobs in manufacturing, installation, and maintenance.
- Reduced Carbon Emissions: Fuel cells can offer a cleaner energy alternative to traditional fossil fuels, potentially reducing carbon emissions.
- Enhanced Energy Security: Diversifying energy sources through fuel cell technology can improve energy security by reducing reliance on foreign oil.
- Technological Advancement: The tax credit could spur further innovation and improvements in fuel cell technology.
Potential Disadvantages
- Potential Cost to Taxpayers: Extending the tax credit would likely result in a cost to taxpayers, as the government would be collecting less revenue.
- Dependence on Subsidies: The fuel cell industry may become overly reliant on government subsidies, hindering its long-term sustainability.
- Uncertainty of Fuel Cell Viability: The long-term viability and cost-effectiveness of fuel cell technology are still uncertain.
- Administrative Burden: Implementing and managing the tax credit program can create an administrative burden for the IRS.
- Potential for Abuse: There is a risk that the tax credit could be exploited through fraudulent claims or improper use.
Most Disadvantaged Areas:
Constitutional Alignment
The bill appears to align with the general welfare clause of the Constitution (Preamble). Congress has the power to lay and collect taxes to provide for the common defense and general welfare of the United States. By incentivizing the development of alternative energy sources, the bill could be argued to promote the general welfare by enhancing energy security and reducing environmental impact. Article I, Section 8, Clause 1 grants Congress 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.
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).